Serbia’s central depository institution announced yesterday the non-public issue by Tigar of 9,500 short-term debt certificates at a par value of RSD 10,000. The annual interest rate was set at 16% while the maturity for the securities is one year.
Tigar has not yet made any additional announcements about future plans regarding the issue of similar debt certificates. This latest decision came as a surprise for us as Tigar has been able to raise debt from foreign financial organizations on very favourable terms several times in the past. We believe this issue represents a pilot project to test whether there would be interest in such securities on the domestic market. As a result, we do not expect to see any further issues. We view this news positively as it proves Tigar still has a high level of credibility among domestic financial investors.