Croatia's Finance Ministry on Wednesday issued a eurobond in the amount of 1.5 billion euros on the international capital market, with the bond's annual coupon interest rate of 1.125% and a final yield of 1.324%, which is the most favourable borrowing for the country so far.

The ministry says that the latest issue of the bond that is mature in 2029, will be used to refinance the USD bond that is due in November.

The ministry also underscores that this bond is with no premium, which has not been often at the international market this year.

Citigroup, Erste Group and JP Morgan are arranging the deal.

The transaction was conducted in the week after the Fitch agency raised Croatia’s credit score to investment-grade level, by one notch to BBB-, with a positive outlook, from BB+.

In March, Standard&Poor’s raised Croatia’s rating to BBB-/A+, including it in the investment category after more than six years thanks to an improved budget situation and economic recovery.