7 July 2017
It is our great pleasure to inform the public that Zagreb Holding fully redeemed its Eurobonds on 5 July 2017. The bonds were issued in the foreign capital market in 2007, in the total amount of EUR 300,000.00. The redemption started last year, when EUR 14,300.00 was redeemed ahead of time, and was completed now with the redemption of the remaining EUR 153,700.00. The redemption of the Eurobonds marked the end of the ten-year period of borrowing in the foreign capital market.
Zagreb Holding carried out detailed preparations for the redemption over the last two years. The funds to redeem the Eurobonds were raised by issuing 7-year domestic notes in the Croatian capital market with a guarantee of the City of Zagreb under much more advantageous terms than the borrowing in the foreign capital market (the interest rate on the Eurobonds had been 5.500 % a year, and the interest rate on the notes is 3.875%).
The domestic notes were issued in two tranches: one in July 2016, in the amount of HRK 1.8 billion, and one in June, in the amount of HRK 0.5 billion. The interest of the domestic investors in the Zagreb Holding’s notes substantially exceeded the amount of the issue. The total demand was nearly HRK 4 billion, which is a very good indication of the investors’ trust in Zagreb Holding, and a substantial contribution to the Croatian capital market, which is in need of good investment opportunities.