SARAJEVO (Bosnia and Herzegovina), May 20 (SeeNews) - The Bosnian town of Pelagicevo said on Friday it is inviting potential investors to subscribe to its planned 1.2 million marka ($649,700/613,600 euro) municipal bond issue.
Pelagicevo is offering 12,000 bonds of 100 marka in par value each, which will mature in ten years, the town hall said in a filing to the Banja Luka Stock Exchange.
The bonds bear an annual interest rate of 5% paid semi-annually.
The offering will be available for subscription for a period of 30 days starting May 20. The bond issuance will be considered successful if the total amount of the offering is subscribed.
Pelagicevo will use the funding from the bond issuance to finance several capital investment projects, including reconstruction of several public buildings and rehabilitation of local roads, it said in the bond prospectus.
(1 euro = 1.95583 marka)