The Republic of Serbia successfully returned to the international capital markets on April 28, achieving a historic milestone with its first-ever triple-tranche eurobond issuance. This landmark transaction included two euro-denominated bonds and one US dollar-denominated bond, totaling approximately €3 billion equivalent. This issuance marks the largest sovereign eurobond offering completed by Serbia and is notable as the first multi-currency issuance since geopolitical tensions in the Middle East escalated.
The structure of the transaction featured a €1 billion five-year eurobond priced at a 4.25% coupon, alongside a €900 million twelve-year eurobond with a 4.875% coupon. The latter was issued under a green bond framework, reflecting Serbia’s commitment to sustainable finance principles. This issuance follows Serbia’s pioneering move in 2021 as the first non-EU European sovereign to release green eurobonds, with proceeds earmarked for financing environmentally sustainable economic growth projects.
Additionally, Serbia issued a $1.25 billion ten-year US dollar-denominated eurobond that garnered significant investor interest, with orders surpassing $3.2 billion—more than 2.5 times the offered volume. This strong demand underscores the robust appetite for Serbian sovereign risk in global markets. Following the issuance, the government executed a currency swap to convert dollar liabilities into euros, effectively mitigating foreign exchange risk while achieving a synthetic euro coupon rate of 4.66%, leading to measurable interest cost savings.
The overall transaction attracted aggregate investor demand exceeding €8 billion equivalent, indicating strong participation from a wide range of international institutional investors. This high level of demand allowed Serbia to tighten pricing by approximately 30 basis points across all three tranches compared to initial guidance.
Governor Jorgovanka Tabaković highlighted that the success of this issuance reflects sustained investor confidence amid global uncertainties. She stated that this transaction reinforces Serbia’s status as a credible and stable investment destination, backed by resilient macroeconomic fundamentals and consistent economic policy management.
The issuance followed an extensive series of investor meetings conducted by both the National Bank of Serbia and the Ministry of Finance, which played a crucial role in securing strong participation and oversubscription during the auction process.
A portion of the proceeds—€1 billion—will be allocated for the early repayment of eurobonds maturing in 2027, thereby reducing refinancing risk and improving Serbia’s public debt maturity profile. This approach illustrates a proactive strategy towards public debt management amidst heightened global financial volatility.
This transaction further solidifies Serbia’s access to international capital markets under competitive terms, enabling the country to address its financing needs while maintaining macroeconomic stability and fostering investor confidence in an increasingly complex global environment.
