ZAGREB: Croatia priced a six-year domestic bond worth 5.8 billion kuna ($908 million) at 99.717 with yield to maturity of 1.8 percent, one of the arrangers said on Thursday.
The bond, which matures on Nov. 27, 2023, has a coupon with an interest rate of 1.75 percent.
The bond is arranged by four major local banks.
Croatia will refinance a seven-year local bond worth 4.0 billion kuna which matures on Nov. 25, 2017 and whose coupon amounted to 6.25 percent. It will also use the proceeds to repay a portion of treasury bills.
Last week Croatia tapped the international markets with a bond worth 1.275 billion euros ($1.51 billion) aimed at refinancing the debts of the state-owned road management companies.
Croatia has undertaken significant fiscal consolidation in the last two years, cutting the budget gap to below one percent of gross domestic product from above five percent. This year the deficit is seen at 0.6 percent of GDP, down from 0.9 percent last year.
The target for next year is a gap of 0.5 percent of GDP eyeing a surplus of 0.8 percent in 2020.
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