3rd October 2023, Skopje – High demand for the latest financial instrument on the market – the green bond was displayed at today’s auction.It was three times the offered amount, i.e. demand amounted to Denar 1.635 billion.Green bonds in the amount of EUR 10 million were accepted at the auction.
”This new financial instrument we have introduced on the market has been found highly attractive. At the auction, demand amounted to Denar 1.635 billion, but, as we have announced, Ministry of Finance accepted green bonds in the amount of Denar 600,020,000. Banks, financial institutions, as well as individuals, also found this instrument highly attractive. It proves that the capital market requires new, creative and innovative instruments that will diversify the portfolio of instruments offered by the Government, thus enabling the investors to expand their financial portfolio”, Minister of Finance, Fatmir Besimi, said.
Funds raised from the first auction of the green bond will be intended for the Energy Efficiency Fund within the Development Bank, funds to be extended the companies under favourable terms and conditions for their green investments.
Maturity period for the issued green bond is two years, with interest rate accounting for 4.75% annually, i.e. they will fall due on 5th October 2025, with the interest paid on 5th October 2024 for the first year and on 5th October 2025 for the second one, along with the principal.
Green bonds are securities, which will be used for investment projects for green development. In other words, they are intended to stimulate and support environment protection projects, as well as finance eco projects. The goal is to boost the investment activity in the country and to accelerate the economic growth.
Green bond is issued on the securities market following the successful introduction of the development bond for citizens, as for which the first issue was published in the course of July 2023, with the demand therefor being twice the amount offered under the published Prospectus.
Funds raised with the issuance of these two instruments will be used to support the development component of the 2023 Budget.
This instrument, as the previously introduced development bond for citizens, is a new product on the domestic market, being foreseen under the Strategy for Development of Government Securities Market, the Public Debt Management Strategy and the Growth Acceleration Plan.
In line with the Capital Market Development Strategy and the Growth Acceleration Plan, in addition to these two instruments, project and development bonds will be offered in the coming period, intended for development and infrastructure projects. Furthermore, following the issuance of the green bond, the second development bond for citizens will be also issued in the course of this month.
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