Serbia sells 550 mln euro of 10-yr T-notes, to be listed on London Stock Exchange

The T-notes were added to a 1.0 billion euro issue of government securities first auctioned in June and were sold at an average yield of 1.25%, down by 37 basis points, the finance ministry said in a statement on Tuesday. 

Demand reached 1.7 billion euro, three times more than the offer.

"After issuing a 1 billion euro bond in June this year when investor interest was also significantly higher than the offer, we decided to once again take advantage of the very favourable conditions on the international market and expand the volume of the issue by an additional 550 million euro," finance minister Sinisa Mali said in the statement.

On June 19, the government issued euro-denominated government securities on the international capital market to finance the early redemption of $1.1 billion of US dollar-denominated Eurobonds.

In this way, Serbia has saved over 3.8 billion dinars ($36 million/32 million euro) in interest payments alone on two issues of US dollar-denominated notes, placed in 2011 and 2013 and maturing in 2020 and 2021, respectively.

($ = 0.901556 euro)