The Public Debt Administration has announced the second auction for state securities denominated in dinars, scheduled for today. The planned sales volume is 20 million dinars. These government bonds have a maturity of 10.5 years, with a coupon rate of 5.25% (paid semiannually), and will mature on July 27, 2035. The settlement date for the bonds is set for March 13.
The minimum nominal value for the offer is 50,000 dinars, and each client can purchase up to 34.33 billion dinars worth of bonds. The first auction of these 10.5-year government bonds was held on January 23, 2025, with exceptional demand. The total demand at that auction reached 157.97 billion dinars, surpassing the planned issue amount by 31%. The range of interest rates varied from 4.50% to 5.95%, and a total of 111.33 billion dinars was raised, with an average yield of 5.25% per year.
The Ministry of Finance noted that offers were accepted in the total amount of 111.34 billion dinars, nearly four times the planned sales volume. Notably, foreign investors accounted for over 40% of the demand, highlighting their strong interest in Serbian government securities, particularly those with long-term maturities.
In late 2024, the Serbian government decided to issue a 10.5-year benchmark government bond totaling 120 billion dinars, with auctions to be held throughout 2025 and 2026. Both domestic and foreign individuals and legal entities can participate through authorized participants.
The Public Debt Administration also emphasized that the proceeds from the sale of these benchmark bonds will be used to support projects that contribute to environmental protection efforts in Serbia.
