Until November 10 this year, Serbia had an inflow of net foreign direct investments in the amount of 1.997 billion euros, NBS Governor Jorgovanka Tabakovic said today.
She pointed out that this is another important news for our country.
– With the first decade of November, from the beginning of the year, 2.850 billion euros of gross directors of foreign investments came to Serbia, of which, according to preliminary data, 1.997 billion euros are net – said Tabakovic at the opening of the second day of the Belgrade Economic Forum.
She said that she hoped that Serbia would succeed in realizing the projection of 2.3 billion euros of net foreign direct investments by the end of the year without reinvested profits.
Also, on Monday, Serbia issued a ten-year Eurobond in the amount of 1.2 billion US dollars on the international financial market, at a coupon rate of 2.125 percent and a yield rate of 2.35 percent, which are the lowest interest rates so far, ie the best conditions has achieved funding in dollars, the NBS said.
At the same time, in order to protect the public debt from foreign exchange risk, ie from volatility in the movement of the euro against the US dollar, Serbia swapped the so-called “hedging” for the first time through a swap transaction, thus replacing obligations under this Eurobond from dollar to euro.
Five times higher demand than the offer of our bonds!
Demand was many times higher than the 1.2 billion dollars issued (it exceeded the amount of 6 billion “greenbacks”), and over 200 reputable investors from all over the world showed interest. Such a high interest in Serbian bonds has enabled the rate of return during the auction to decrease significantly (by as much as 40 basis points) compared to the initial conditions.
Repayment of the deadly debt from 2011
The largest part of the funds collected by the transaction (in the amount of 900 million dollars) will be used for early repayment of a significant part of the remaining debt on the basis of expensive dollar Eurobonds issued in 2011 (at a high yield of 7.50 percent).
– In this way, our country once again managed to replace the expensive dollar debt with a cheaper one on the international market. The achieved interest rate is the lowest that Serbia has achieved so far on the international financial market and many times lower compared to the interest rate achieved during the previous issue of a ten-year Eurobond in dollars in 2011 – the governor added.
It is also a confirmation that Serbia has completely positively transformed its economy, readily welcomed this crisis, as well as resolutely strives to completely replace the last remnants of irresponsible behavior from the past and expensive borrowing with a rational and responsible attitude towards its people, Srbija Danas reports.
