november 2014 monthly update - javnidug.gov.rs update for investors/2014/republic... · november...
TRANSCRIPT
November 2014
Monthly Update
Politics The International Monetary Fund (IMF) mission has reached staff-level agreement with the Serbian authorities, subject to approval by
the IMF’s management and executive boards, on an economic program that could be supported by a 36-month precautionary stand-by
arrangement, the IMF said in a press release. The proposed access could total around EUR 1 billion, or 200% of quota. The
International Monetary Fund (IMF) will send a mission to Serbia in mid-May to review the country’s performance in the first quarter
of 2015 under a three-year precautionary stand-by arrangement subject to approval from the IMF’s management and executive board.
The Budget law for 2015, will be submitted to the Parliament in December.
On November 28th, the government adopted a bill on changes and amendments to the Law on Planning and Construction, seeking to
strengthen legal security and transparency, and simplify procedures.
European commissioner for neighborhood policy and enlargement negotiations Johannes Hahn said that he is certain that Serbia will
open a chapter of EU accession talks in the coming weeks or months, noting that the new approach, applied to Montenegro and Serbia,
is to first open chapters 23 and 24, which deal with the rule of law.
Serbian Prime Minister Mr. Vucic visit to Israel described as historic by Prime Minister Benjamin Netanyahu. Ministers agreed that
there is room for Serbia and Israel to expand their cooperation to industrial production, agriculture, information technologies, and
security issues.
Fiscal Sector The Securities Commission has given its approval for publishing the prospectus for Serbia’s first public offering of a municipal bond,
to be issued by the City of Sabac, Securities Commission Chairman Zoran Cirovic said on November 26th, noting that this will also be
the first municipal bond to be listed on the Belgrade Stock Exchange (BSE).
In October 2014, public debt of the Republic of Serbia increased from RSD 2,628.3bn (EUR 22.1bn) at the end of September 2014, to
RSD 2,664.9bn (EUR 22.2bn) at the end of October 2014. Central Government public debt to GDP (ESA 2010 methodology) ratio
was at the level of 68.1% at the end of October 2014. The major share of public debt is still in foreign currency out of which in EUR is
41.8%, USD 30.7%, RSD 22.0%, SDR 4.3%, CHF 0.7% and other 0.5% (GBP, JPY, DKK, SEC, NOK). Up to the end of October
2014, Public Debt Administration of the Republic of Serbia managed to meet its obligations which amounted to RSD 433.3bn (EUR
3.6bn), out of which principal payments amounted to RSD 338.2bn (EUR 2.8bn), while interest and other costs were RSD 95.1bn
(EUR 0.8bn). Vast majority of items repaid up to date belong to government securities issued on domestic market RSD 282.0bn (EUR
2.3bn) out of which principal payments were RSD 233.7bn (EUR 1.9bn) and interest payments were RSD 48.3bn (EUR 0.4mln).
Obligations in respect of foreign creditors were repaid in amount of RSD 67.1bn (EUR 556.7mln), out of which principal RSD 29.0
bn (EUR 240.3mln). Payments in respect of guarantees issued by the Government were RSD 38.6bn (EUR 320.0mln) out of which
principal RSD 31.5bn (EUR 261.3mln), while interest were RSD 67.1bn (EUR 58.7mln). In the period January – October 2014, PDA
received RSD 413.7bn (EUR 3.5bn) from domestic market out of which government securities issued in domestic currency amounted
to RSD 312.4bn (EUR 2.6bn) while receiving from EUR denominated government securities was RSD 101.3bn (EUR 851.1mln).
Total receiving at the end of October 2014, amounted to RSD 509.8bn (EUR 4.3bn).
At the auction of 10-year EUR denominated Government Bonds of the Republic of Serbia (reopening from 9 April 2014), issued on
19 of Novembar 2014, the volume of Government bonds issued amounted to EUR 25,962,000. The total volume of offers amounted to
EUR 33,340,000, i.e. 128.42% of the issued volume. Government Bonds were sold at YTM of 5.50%. The maturity date of the said
bonds will be 11 of April 2024. The coupon (5.00% annualy) payment date is 11 of April. The payments are on annual basis until
maturity date 11 of April 2024.
Economy A reorganization plan for state power utility Elektroprivreda Srbije (EPS), which the Mining and Energy Ministry has sent to the
government for adoption, envisages carrying out the company’s corporatization before turning it into a joint-stock company, “in which
the state will always be a majority shareholder,” Minister Aleksandar Antic said. EPS should become a joint-stock company in
September 2016, according to the Minister. The plan calls for organizing EPS as a group with three clearly defined lines of business –
production, supply, and distribution – a structure that would replace the current 13 subsidiaries. The process will also result in clear
data on EPS’ property and its value.
On November 6th, Serbian and French officials and companies signed six documents, including a memorandum of understanding
(MoU) on the construction of Belgrade’s metro, following a Serbian-French business forum, held as part of French Prime Minister
Manuel Valls’ two-day visit to Belgrade. The documents include an MoU between airport operator Vinci Airports, part of French
concessions and construction firm Vinci, and Belgrade’s international airport operator, Aerodrom Nikola Tesla, on the development of
international airports in Serbia, and a letter of intent between Serbian state power utility Elektroprivreda Srbije (EPS) and energy
solutions company Schneider Electric in Serbia. The documents include a bilateral social security agreement, transportation and
infrastructure agreement, and an agreement on technical cooperation in the field of public-private partnerships (PPPs).
On November 4th, the American Chamber of Commerce (AmCham) in Serbia hosted Economy Minister Zeljko Sertic, who presented
the ministry’s measures for galvanizing the economy, including through removing obstacles to doing business, boosting business
liquidity, providing incentives to investments, and the government’s efforts to draw foreign direct investments. Minister Sertic said
that an attractive business environment requires aligning legislation and accompanying regulations and removing bottlenecks,
simplifying procedures, and creating a predictable and fair business environment.
Foreign Direct Investments KWS Srbija, a Serbian subsidiary of the German-based plant breeding company KWS, officially opened a seed processing factory in
Becej on November 28th, in a EUR 30 million investment.
Delhaize Serbia unveils EUR 50 million distribution center in Stara Pazova, as Delhaize Group CEO says “billions of dinars” to be
invested in modernization of retail network in Serbia in coming years.
November 2014
Source: Statistical Office of the Republic of Serbia; National Bank of Serbia; Bloomberg; Ministry of Finance and Economy * Estimated value; **According to NBS methodology Foreign Debt consist of Public and Private sector debt; *** According to methodological concept of IMF and EU “BPM6” applicable from April
2014; Ɨ General Government;
Macroeconomic Data Real GDP growth %
Industrial
production
Oct14/ Oct13
in %
CPI Current acc.
Balance***
Government bonds on international
market YTM as of 30th November
Currency
units/USD
Currency
units/EUR
2012 2013 2014* Oct'14 Sep'14
Ann. %
Sep
last12 months
mlnEUR
% of GDP
Serbia 2017
Serbia 2018
Serbia 2020
Serbia 2021
30 Nov 2014
30 Nov 2013
30 Nov 2014
30 Nov 2013
-1.0 2.6 -2.0 -11.2% -0.2 1.8 -2,010.4 -6.1 3.642% 4.105% 4.318% 4.670% 96.8325 83.7329 120.5468 114.0442
* Estimated value
• CPI COICOP is defined as a measure of average change of retail prices of goods and services used for personal consumption. Prices
of these products and services in October 2014 in relation to September 2014 decreased by 0.2%, on average. Consumer prices in
October 2014, compared with October 2013, increased by 1.8%, and in relation to December 2013, increase amounted to 2.2%.
Observed by main groups according to destination of consumption in October 2014 in relation to the previous month, the greatest
decrease of prices was noted in the following groups: Food and non-alcoholic beverages (-1.4%), Furnishings, household equipment
and routine household maintenance and Communication (by -0.4%, each) and Alcoholic beverages and tobacco (-0.1%). The increase
of prices was noted in the groups Recreation and culture (2.5%), Housing, water, electricity, gas and other fuels (1.0%), Education
(0.8%), Health (0.6%), Restaurants and hotels (0.5%), Clothing and footwear (0.4%) and Transport (0.1%). Prices of other products and
services mostly remained unchanged.
• The overall external trade in the Republic of Serbia for January – October 2014 amounted to:
- USD 29,796.8 million - which was a 3.6% increase compared to the same period 2013;
- EUR 22,103.2 million - which was an increase of 1.6% compared to the same period 2013.
The value of exports amounted to USD 12,503.6 million, which was 4.0% increase when compared to the same period last year, while
the value of imports amounted to USD 17,293.2 million, which was 3.3% increase relative to the same period last year. Expressed in
Euros, the value of exports amounted to EUR 9,275.0 million, which was the increase of 2.0%, compared to the same period last year.
The value of imports amounted to EUR 12,828.2 million, which was 1.3% increase when compared to the same period last year. The
deficit amounted to USD 4,789.6 million, which was an increase of 1.7% in relation to the same period last year. The deficit expressed in
Euros amounted to 3,553.2 million, which was a decrease of 0.4% compared to the same period last year. The export - import ratio
equaled 72.3% and was higher if compared to the same period last year when it was 71.9%. Expressed in Euros, the value of exports
amounted to EUR 980.7 million, which was a decrease of 6.6%, compared to the same month last year. The value of imports amounted
to EUR 1,386.5 million, which was 2.3% decrease when compared to the same month last year.
Source: Belgrade Stock Exchange
2.6%
2.2%
5.0%
20.1%
81.4%
Real GDP growth (%)
Inflation rate Ann. (%)
Ɨ Budget deficit (% GDP)
Unemployment rate Oct 2013
**Foreign Debt (% GDP)
2013
-2.0%
1.8%
4.5%
20.8%
79.5%
*GDP growth for 2014 (%)
Inflation rate Ann. Oct (%)
*Ɨ Budget deficit (% GDP)
Unemployment rate April 2014
**Foreign Debt as of Sep 2014 (% GDP)
2014
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
% Belgrade OverNight Index Average
250.0
450.0
650.0
850.0
1,050.0
1,250.0
1,450.0
1,650.0Belgrade Stock Exchange Indices
Belex 15 index Belex line index
November 2014
Currency, Interest Rates and FDI
Key Policy Rates of National Bank of Serbia Current value Last change Date of last meeting Next board meeting
Key policy rate - 2w repo 8.00%
-0.50% 13.11.2014 11.12.2014 Deposit facility interest rate 5.50%
Lending facility interest rate 10.50%
Source: National bank of Serbia
Source: National bank of Serbia
• NBS FX reserves amounted to EUR 10,714.6 million at end-October, covering M1 by 313 percent and more than seven months of
imports of goods and services. Major inflow to FX reserves came from the sale of euro-denominated government securities in the
domestic financial market (EUR 45.3 million). Larger outflows were registered on account of settlement of liabilities to foreign
creditors (EUR 96.1 million), banks’ withdrawal of higher allocations under FX reserve requirements (EUR 39.6 million, net) and
repayment of debt to the IMF (EUR 30.4 million). Net FX reserves, defined as FX reserves less banks’ required reserves and drawings
from the IMF, came at EUR 7,865.0 million. Trading volume in the IFEM reached EUR 544.4 million, down by EUR 50.6 million from
the month before. In the year to October, IFEM trading volume totalled EUR 4,679.6 million. The dinar depreciated against the euro by
0.2% nominally, while the NBS intervened in the IFEM by selling EUR 140 million in order to ease excessive short-term volatility of
the exchange rate.
• The industrial production in the Republic of Serbia in October 2014, when compared to October 2013, decreased by 11.2% and in
relation to 2013 average, it increased by 2.7%. Industrial production in the period January – October 2014, compared with the same
period 2013, decreased by 6.3%.
Foreign Direct Investments in Serbia in period 2008 – September 2014
Source: National bank of Serbia; *FDI value has been presented in compliance with the Sixth Edition of the Balance of Payments and International
Investment Position Manual, International Monetary Fund, 2009 (BPM6) from the end of 2013.
56789
1011121314
% National Bank of Serbia Interest Rates
Key policy rate - 2w repo Deposit facility interest rate
Lending facility interest rate
80859095
100105110115120125
In RSD Exchange Rates
EUR/RSD USD/RSD
1,824 1,373 860 1,827 242
1,229 1,047
5.6%
4.7%
3.1%
5.0%
0.8%
3.6% 3.2%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2008 2009 2010 2011 2012 2013* September
2014*FDI (net), EUR million FDI (net), %GDP
November 2014
Public Debt Report
Public Debt Stock and Structure as of 31th
October 2014: EUR USD RSD GDP%
Direct Liabilities (A)
Internal Debt 8,071,405,192 10,143,335,947 961,213,958,653 24.4%
External Debt 11,593,837,280 14,569,976,806 1,380,696,169,088 35.1%
Direct Liabilities in Total 19,665,242,472 24,713,312,753 2,341,910,127,741 59.5%
Indirect Liabilities (B)
Internal Debt 689,458,046 866,442,016 82,106,731,361 2.1%
External Debt 1,855,020,498 2,331,204,500 220,912,165,141 5.6%
Indirect Liabilities in Total 2,544,478,545 3,197,646,515 303,018,896,502 7.7%
Non-Guaranteed Local Government Debt (C)
Internal Debt 323,561,096 406,619,271 38,532,502,653 1.0%
External Debt 123,253,863 154,893,146 14,678,154,691 0.4%
Non-Guaranteed Local Government Debt in Total 446,814,959 561,512,417 53,210,657,344 1.4%
Central Government Public Debt (A+B) 22,209,721,017 27,910,959,268 2,644,929,024,243 67.2%
General Government Public Debt (A+B+C) 22,656,535,976 28,472,471,686 2,698,139,681,587 68.6%
Date Internal Debt External Debt Monthly Change of
Public Debt Direct Liabilities Indirect Liabilities Direct Liabilities Indirect Liabilities
30/11/2013 154.6 0.0 49.8 2.5 206.8
31/12/2013 8.5 5.3 639.0 -19.1 633.6
31/01/2014 33.9 -18.5 129.0 -6.1 138.2
28/02/2014 203.4 -18.4 -62.0 -4.5 118.6
31/03/2014 156.4 5.6 -55.1 2.1 108.9
30/04/2014 128.3 -22.6 -18.6 1.3 88.4
31/05/2014 18.9 -54.2 102.5 -12.3 54.9
30/06/2014 69.4 -18.5 -14.7 -26.3 9.9
30/07/2014 149.0 3.0 139.3 -11.8 279.5
31/08/2014 111.3 2.1 841.4 -10.8 944.0
30/09/2014 35.5 -14.0 223.1 -14.0 230.5
31/10/2014 110.8 -32.2 64.2 -47.3 95.5
In EUR million
Source: Public Debt Administration
18,600
18,900
19,200
19,500
19,800
20,100
20,400
20,700
21,000
21,300
21,600
21,900
22,200
22,500
0
1,500
3,000
4,500
6,000
7,500
9,000
10,500
12,000
13,500
15,000
16,500
18,000
19,500
21,000
22,500
In m
illi
on
EU
R
In m
illi
on
EU
R
External debt - indirect liabilities External debt - direct liabilities
Internal debt - indirect liabilities Internal debt - direct liabilities
DYNAMICS OF PUBLIC DEBT
November 2014
INTERNAL DEBT ANALYSIS EXTERNAL DEBT ANALYSIS
Source: Public Debt Administration
Source: Public Debt Administration
Source: Public Debt Administration
39.5%
37.5%
38.0%
38.5%
39.0%
39.5%
40.0%
40.5%
41.0%
Internal Public Debt/Total Public Debt Ratio
60.5%
57.0%
58.0%
59.0%
60.0%
61.0%
62.0%
External Public Debt/Total Public Debt Ratio
8,071
689
0
100
200
300
400
500
600
700
800
900
6,200
6,400
6,600
6,800
7,000
7,200
7,400
7,600
7,800
8,000
8,200
In m
illi
on
EU
R
Internal Public Debt Dynamics
Direct liabilities Indirect liabilities
11,594
1,855
1,500
1,600
1,700
1,800
1,900
2,000
2,100
7,000
7,500
8,000
8,500
9,000
9,500
10,000
10,500
11,000
11,500
12,000
In m
illi
on
EU
R
External Public Debt Dynamics
Direct liabilities Indirect liabilities
55.7%
44.0%
0.3%
Internal Debt Currency Structure
RSD EUR USD
40.3%
50.6%
1.2% 7.0% 0.8%
Extrenal debt Currency Structure
EUR USD CHF SDR Other
November 2014
Government Securities DOMESTIC MARKET OVERVIEW
Source: Public Debt Administration
EUROBOND OVERVIEW
Spread to benchmark Spread to US Dollar Interest swap rate
Source: Bloomberg
6.70% 7.24%
8.20%
9.00%
10.00% 10.80%
11.79%
6.0%6.5%7.0%7.5%8.0%8.5%9.0%9.5%
10.0%10.5%11.0%11.5%12.0%12.5%
3M 6M 53W 2Y 3Y 5Y 7Y
Last Primary Auctions Accepted Rates
6.91%
7.60%
8.97%
10.22%
12.18% 12.19%
12.08%
6.0%6.5%7.0%7.5%8.0%8.5%9.0%9.5%
10.0%10.5%11.0%11.5%12.0%12.5%13.0%
3M 6M 53W 2Y 3Y 5Y 7Y
Average Accepted Rates at Primary Auctions
4.304.604.905.205.505.806.106.406.707.007.307.607.90
96 $98 $
100 $102 $104 $106 $108 $110 $112 $114 $116 $118 $120 $
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Price/YTM Graph - Serbia Eurobond 2021
Closing price YTM
170 bps
200 bps
230 bps
260 bps
290 bps
320 bps
350 bps
380 bps
410 bps
440 bps
470 bps
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
In p
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YTM US Dollar Interest Rate Swap - 7Y
Republic of Serbia Eurobond 2021 - Tap
Issuer: Ministry of Finance of the Republic of Serbia
Ratings: BB- (S&P); BB- (Fitch)
Maturity: 28.09.2021
Coupon: 7.25% semi-annual
*Size: USD 2.0bn
**Re-offer yield: 6.625%
Re-offer price: 104.179
Spread to US Treasury Benchmark: 497.0 bps
Announcement date: 27.09.2012
Listing: London Stock Exchange
*Primary auction USD 1,0bn 21.09.2011.; Tap Issuance 27.09.2012.
USD 1,0bn. **Tap Issuance re-offer yield.
Republic of Serbia Eurobond 2021 - Price/Yield
Date Closing Price YTM Monthly price
change %
Monthly yield
change %
30/11/14 114.92 4.670 0.1% -0.8%
31/10/14 114.82 4.708 2.3% -8.6%
30/09/14 112.19 5.149 -2.6% 9.5%
31/08/14 115.17 4.702 0.8% -3.5%
31/07/14 114.20 4.873 -0.3% 0.6%
30/06/14 114.54 4.843 -1.7% 5.9%
31/05/14 116.48 4.573 4.3% -14.0%
30/04/14 111.68 5.319 -0.7% 2.1%
31/03/14 112.51 5.211 0.5% -1.8%
28/02/14 111.97 5.308 6.1% -16.1%
31/01/14 105.51 6.328 -0.3% 0.7%
31/12/13 105.82 6.285 0.8% -2.3%
November 2014
Republic of Serbia Eurobond 2017
Issuer: Ministry of Finance of the Republic of Serbia
Ratings: BB- (S&P); BB- (Fitch)
Maturity: 21.11.2017
Coupon: 5.250% semi-annual
Size: USD 750.0mln
Re-offer yield: 5.450%
Re-offer price: 99.135
Spread to US Treasury Benchmark: 482.5 bps
Announcement date: 14.11.2012
Listing: London Stock Exchange
Spread to benchmark Spread to US Dollar Interest swap rate
Source: Bloomberg
3.20
3.50
3.80
4.10
4.40
4.70
5.00
5.30
5.60
5.90
6.20
6.50
95.0 $
96.0 $
97.0 $
98.0 $
99.0 $
100.0 $
101.0 $
102.0 $
103.0 $
104.0 $
105.0 $
106.0 $
107.0 $
108.0 $
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Price/YTM Graph - Serbia Eurobond 2017
Closing price YTM
230 bps
250 bps
270 bps
290 bps
310 bps
330 bps
350 bps
370 bps
390 bps
410 bps
430 bps
450 bps
470 bps
490 bps
510 bps
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
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YTM US Dollar Interest Rate Swap - 3Y
Republic of Serbia Eurobond 2017 - Price/Yield
Date Closing Price YTM Monthly price
change %
Monthly yield
change %
30/11/14 104.49 3.642 0.6% -6.8%
31/10/14 103.82 3.906 0.9% -7.8%
30/09/14 102.94 4.235 -1.3% 10.9%
31/08/14 104.29 3.818 -0.2% 0.7%
31/07/14 104.48 3.790 -0.2% 0.5%
30/06/14 104.65 3.772 -0.7% 5.7%
31/05/14 105.43 3.569 1.9% -14.6%
30/04/14 103.49 4.179 -0.4% 2.4%
31/03/14 103.90 4.083 -0.6% 4.1%
28/02/14 104.54 3.923 3.0% -18.4%
31/01/14 101.51 4.808 0.7% -4.0%
31/12/13 100.84 5.008 0.7% -3.8%
November 2014
Republic of Serbia Eurobond 2020
Issuer: Ministry of Finance of the Republic of Serbia
Ratings: BB- (S&P); BB- (Fitch)
Maturity: 25.02.2020
Coupon: 4.875% semi-annual
Size: USD 1.5bn
Re-offer yield: 5.150%
Re-offer price: 98.401
Spread to US Treasury Benchmark: 378.4 bps
Announcement date: 14.02.2013
Listing: London Stock Exchange
Republic of Serbia Eurobond 2020 - Price/Yield
Date Closing Price YTM Monthly price
change %
Monthly yield
change %
30/11/14 102.58 4.318 0.7% -3.3%
31/10/14 101.91 4.467 2.0% -8.6%
30/09/14 99.94 4.887 -2.0% 9.5%
31/08/14 101.99 4.461 0.4% -1.7%
31/07/14 101.63 4.540 0.0% 0.1%
30/06/14 101.67 4.535 -1.3% 6.3%
31/05/14 103.05 4.267 3.5% -13.9%
30/04/14 99.58 4.958 -0.6% 2.5%
31/03/14 100.18 4.839 0.2% -0.8%
28/02/14 99.99 4.877 4.8% -15.6%
31/01/14 95.42 5.781 0.3% -0.7%
31/12/13 95.17 5.821 1.3% -3.8%
Spread to benchmark Spread to US Dollar Interest swap rate
Source: Bloomberg
4.00
4.50
5.00
5.50
6.00
6.50
7.00
7.50
89.0 $
91.0 $
93.0 $
95.0 $
97.0 $
99.0 $
101.0 $
103.0 $
105.0 $
107.0 $
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Price/YTM Graph - Serbia Eurobond 2020
Closing price YTM
210 bps
240 bps
270 bps
300 bps
330 bps
360 bps
390 bps
420 bps
450 bps
480 bps
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
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YTM US Dollar Interest Rate Swap - 6Y
November 2014
Republic of Serbia Eurobond 2018 - Price/Yield
Date Closing Price YTM Monthly price change %
Monthly yield change %
30/11/14 106.47 4.105 0.1% -1.3%
31/10/14 106.37 4.160 1.7% -10.5%
30/09/14 104.59 4.649 -1.7% 10.6%
31/08/14 106.43 4.205 -0.2% 0.7%
31/07/14 106.66 4.176 -0.1% 0.1%
30/06/14 106.80 4.173 -1.1% 6.5%
31/05/14 108.00 3.917 2.4% -13.8%
30/04/14 105.43 4.546 -0.6% 2.8%
31/03/14 106.06 4.422 0.2% -1.3%
28/02/14 105.89 4.480 3.7% -16.4%
31/01/14 102.16 5.360 0.4% -1.9%
31/12/13 101.74 5.465 0.6% -2.6%
Spread to Benchmark Spread to US Dollar Swap Interest rate
0.00
1.00
2.00
3.00
4.00
5.00
6.00
96.0 $
98.0 $
100.0 $
102.0 $
104.0 $
106.0 $
108.0 $
110.0 $
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Price/YTM Graph - Serbia Eurobond 2018
Closing price YTM
190 bps
210 bps
230 bps
250 bps
270 bps
290 bps
310 bps
330 bps
350 bps
370 bps
390 bps
410 bps
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
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YTM US Dollar Interest Rate Swap - 5Y
Republic of Serbia Eurobond 2018
Issuer: Ministry of Finance of the Republic of Serbia
Ratings: BB- (S&P); BB- (Fitch); B1(Moody’s)
Maturity: 03.12.2018
Coupon: 5.875 % semi-annual
Size: USD 1.0bn
Re-offer yield: 6.125%
Re-offer price: 98.937
Spread to US Treasury Benchmark: 476.5 bps
Announcement date: 21.11.2013
Listing: London Stock Exchange
November 2014
Amortizing bond - London Club 2024
Auction Date Maturity Date Par Value Market value Coupon %
01/10/2004 01/11/2024 1,080,000,000 972,000,190 6.75%
Price/Yield
Date Closing Price YTM Monthly price change % Monthly yield change %
30/11/14 101.69 6.515 0.0% -0.1%
31/10/14 101.68 6.519 0.5% -1.1%
30/09/14 101.13 6.594 -0.2% 0.5%
31/08/14 101.3 6.56 -0.1% 0.3%
31/07/14 101.51 6.544 -0.1% 0.2%
30/06/14 101.60 6.533 -0.2% 0.3%
31/05/14 101.78 6.511 0.2% -0.4%
30/04/14 101.59 6.538 0.8% -1.6%
31/03/14 100.77 6.646 -0.4% 0.9%
28/02/14 101.21 6.589 1.3% -2.6%
31/01/14 99.88 6.765 1.1% -2.0%
31/12/13 98.83 6.904 0.2% -0.3%
AMORTIZING BOND – LONDON CLUB 2024 OVERVIEW
Spread to benchmark Spread to US Dollar Interest swap rate
Source: Bloomberg
6.30
6.40
6.50
6.60
6.70
6.80
6.90
7.00
7.10
7.20
7.30
7.40
7.50
7.60
7.70
7.80
7.90
8.00
94.0 $
95.0 $
96.0 $
97.0 $
98.0 $
99.0 $
100.0 $
101.0 $
102.0 $
103.0 $
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nta
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Price/YTM Graph Amortizing Bond - Serbia London Club 2024
Closing price YTM
425 bps
450 bps
475 bps
500 bps
525 bps
550 bps
575 bps
600 bps
625 bps
650 bps
675 bps
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
In p
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YTM US Dollar Interest Rate Swap - 10Y