November 23 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) revealed plans to issue its first bond in Serbian dinars, with net proceeds from the issue intended for use in the bank's ordinary operations.
The three-year, floating rate bond, worth 2.5 billion dinars ($21.6 million/20.4 million euro), will be issued on December 5, the EBRD said in a prospectus of the issue posted on the bank's website.
The floating rate is set equal to three-month BELIBOR plus 40 basis points.
Belgrade-based Raiffeisen Banka will act as underwriter of the issue. The interest on the bonds will be paid on a quarterly basis as of March 2017, the bank added.
BELIBOR, the rate at which dinar interbank term deposits within the Serbian market are offered, is calculated as an average of daily quotes provided by ten panel banks and is updated on a daily basis.
Three-month BELIBOR stood at 3.45% on Wednesday, according to data from Serbia's central bank.
Earlier this month, EBRD increased its projection for Serbia's 2016 economic growth to 2.5% from an earlier forecast of 1.8%, as private investments are expected to continue to be the main growth driver, supported by the recovery of consumption.
(1 euro=122.850 Serbian dinars)