The Republic of Serbia returned to the international capital markets on April 28, executing for the first time in its history a triple-tranche eurobond issuance, combining two euro-denominated bonds and one US dollar-denominated bond in a single transaction. The deal, with a total value of approximately €3 billion equivalent, represents the largest sovereign eurobond issuance ever completed by Serbia, and the first multi-currency transaction since the escalation of geopolitical tensions in the Middle East.
The transaction structure included a €1.0 billion five-year eurobond priced with a 4.25% coupon, alongside a €900 million twelve-year eurobond carrying a 4.875% coupon. The longer-dated instrument was issued under a green bond framework, marking Serbia’s continued alignment with sustainable finance principles following its pioneering 2021 debut as the first non-EU European sovereign to issue green eurobonds. Proceeds from this tranche will be directed toward financing and refinancing projects that support environmentally sustainable economic growth.
In parallel, Serbia issued a $1.25 billion ten-year US dollar-denominated eurobond, which attracted the strongest investor demand. Orders exceeded $3.2 billion, more than 2.5 times the offered volume, underscoring robust appetite for Serbian sovereign risk across global markets. Following issuance, the government executed a currency swap, converting dollar liabilities into euros, effectively reducing exposure to foreign exchange risk while achieving a synthetic euro coupon rate of 4.66%, generating measurable interest cost savings.
The overall transaction drew aggregate investor demand exceeding €8 billion equivalent, reflecting strong participation from a broad base of international institutional investors. The strength of demand enabled the Republic to tighten pricing by approximately 30 basis points across all three tranches compared to initial guidance.
Governor Jorgovanka Tabaković emphasized that the success of the issuance demonstrates sustained investor confidence despite global uncertainty. She noted that the transaction confirms Serbia’s position as a credible and stable investment destination, supported by resilient macroeconomic fundamentals and consistent economic policy management.
The issuance followed an intensive series of investor meetings conducted jointly by the National Bank of Serbia and the Ministry of Finance of Serbia, which helped secure strong participation and oversubscription during the auction process.
A portion of the proceeds, amounting to €1.0 billion, will be used for the early repayment of eurobonds maturing in 2027, reducing refinancing risk and smoothing Serbia’s public debt maturity profile. This move signals a proactive and disciplined approach to public debt management at a time of heightened global financial volatility.
The transaction reinforces Serbia’s access to international capital markets under competitive terms, positioning the sovereign to manage financing needs while maintaining macroeconomic stability and investor confidence in a complex global environment.
