25 April 2019 - An auction of state bonds was held at the Montenegro Stock Exchange this week. A total of 64.516 state bonds were sold, and their value totals 64.666.000 EUR, 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 to raise funds for financing state budget.
“The primary sale was made for two state bonds in the total amount of 190 million EUR. 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 EUR, 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, or 2024. A bond is with a fixed interest rate. It amounts to 3%.
A total of 14.516 of bonds were sold at the auction and their total value amounted 14.516.000 EUR, which is 10,37% of the total issue.
“Since the entire quantity was not sold today, the primary sale will continue tomorrow,” said the representatives of MSE a few days ago.
As far as the sale of state bonds with trade symbol GB1-2026 is concerned, the amount of issue was 50.000.00 EUR. The total amount of bonds was 50.000 with a nominal value of 1.000 EUR per bond. The maturity deadline is 2026.
“This bond is charged with a fixed interest rate of 3,5%. The total amount of these bonds was sold at today’s auction. The demand was 12.645 higher than offered in the initial sale. Since the demand exceeded the offer, there was a little “competition” among the interested buyers. At 12:02, when the auction closed, we have come to the price of 1.003 EUR per bond. This means that the total value of the primary sale of this issue amounted 50.150.00 EUR,″ said the representatives of Montenegro Stock Exchange.
A total of 64.516 bonds, or 34% of the total issue, was sold at the auction which took place on April 22.