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The First Long-Term Dinar Bond Sold on the Belgrade Stock Exchange

Erste banka a.d. Novi Sad has sold today in the primary market the first series of long-term dinar bonds on the Belgrade Stock Exchange. It is the first bank in Serbia which has enabled participation of all interested domestic and foreign investors, transparently, through an auction and public invitation. Bonds worth nominal RSD 1.5 billion were sold at two-year maturity, quarterly coupon payment and the annual interest of 15%.

This sale is indicative of market interest in long-term dinar investment in debt securities of the banking sector. Furthermore, this issue contributes to the development of the domestic capital market as it broadens the range of financial instruments traded on the Belgrade Stock Exchange. Besides, such issues have a positive impact on dinarisation and financial stability as greater participation of long-term dinar sources of banks implies greater long-term lending in dinars and a reduction in foreign exchange risk in the system.

The NBS welcomes the sale of long-term dinar bonds and expects local banks to resort to this form of funding. It also expects domestic enterprises and international financial institutions to follow suit.

Governor`s Office