Serbia raised approximately €3 billion equivalent through an international bond issue in April 2026, combining new financing with measures to reduce the concentration of upcoming sovereign debt repayments. The transaction comprised three tranches with maturities of five, ten and twelve years, giving the government additional points across its international borrowing curve. Total investor demand surpassed €8 billion, more than double the amount offered. The euro-equivalent coupons were set at 4.25% for the five-year tranche, 4.66% for the ten-year tranche and 4.875% for the twelve-year tranche.
Three-tranche structure broadens maturity profile
The ten-year security was issued in US dollars, while the resulting currency exposure was converted into euros through a hedging transaction. The twelve-year bond was issued with a green designation. The April transaction also incorporated liability-management measures alongside the new borrowing. Of the proceeds, €1 billion from the five-year bond was used immediately to repurchase part of Serbia’s Eurobond debt scheduled to mature in 2027. The repurchase reduces the concentration of refinancing needs around the 2027 maturity, while the longer-dated securities extend the government’s international debt profile.
Strong demand supports market access
Investor orders exceeded €8 billion, compared with approximately €3 billion equivalent issued across the three tranches. The order book therefore stood at more than twice the size of the transaction. The issue also added new benchmark maturities to Serbia’s international sovereign yield curve. These reference points are relevant to domestic companies seeking to access international bond markets, providing additional pricing benchmarks for corporate issuance.
The coupons are materially above the borrowing costs available during the ultra-low-interest-rate period. The April transaction nevertheless placed emphasis on extending maturities and managing future refinancing requirements alongside the immediate cost of funding.
