BANJA LUKA (Bosnia and Herzegovina), September 13 (SeeNews) - Bosnia's eastern municipality of Vlasenica said it is inviting investors to subscribe for its maiden bond issue of 1.8 million marka ($1.0 million/920,300 euro).
The municipality is offering interested domestic and foreign investors a total of 18,000 bonds with a nominal value 100 marka each, it said in a Banja Luka bourse filing earlier this week.
The bonds carry a 4% annual interest and will mature in 12 years.
During the first year, the municipality will make monthly payments on the interest only, while in the next eleven years payments will go towards both the interest and the principal.
The subscription process will take place between September 25 and October 4, as the sell price will be determined on the bourse. The success threshold is set at 60%.
Vlasenica is located in the Serb Republic, one of the two entities which comprise Bosnia and Herzegovina. The other is the Muslim-Croat Federation.
(1 euro = 1.95583 marka)