State bonds purchased by insurance companies, banks and investors from the region


An auction of state bonds today was held at the Montenegro Stock Exchange today. A total of 64.516 state bonds were sold, and their value totals €64.666.000, which is 34% of the issue. The auction was a success and the purchase of state bonds was made via three broker houses and two banks. According to the unofficial data, buyers were mostly insurance companies, banks, investors from the region and a small percentage of citizens. The auction was held with the objective of raising funds for financing state budget.

“Primary sale was made for two state bonds in the total amount of €190 million. They are long-term debt bonds and  the day of their maturity the owners will be paid one-off principal and annual interest. For state bonds with GB1-2024 trade symbol, issue amounted €140.000.00, with a total of 140.000 bonds and with a nominal value of 1.000 per bond”, said the representatives of Montenegro Stock Exchange.

Five years is their maturity deadline, i.e. year 2024. A bond is with fixed interest rate. It amounts 3%.

A total of 14.516 of bonds were sold at today’s auction and their total value amounted €14.516.000, which is 10,37% of total issue.

“Since the entire quantity wasn’t sold today, primary sale will continue tomorrow”, said the representatives of MSE.

As far as the sale of state bonds with trade symbol GB1-2026 is concerned, the amount of issue was €50.000.00. Total amount of bonds was 50.000 with nominal value of €1.000 per bond. The maturity deadline is 2026.

“This bond is charged with a fixed interest rate of 3,5%. Total amount of these bonds was sold at today’s auction. The demand was 12.645 higher than offered in the primary sale. Since the demand exceeded the offer, there was a little “competition” among the interested buyers. At 12:02, when the auction closed, we’ve come to the price of €1.003 per bond. This means that total value of the primary sale of this issue amounted €50.150.00″, said the said the representatives of Montenegro Stock Exchange.

A total of 64.516 bonds, or 34% of the total issue, was sold at today’s auction.




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