Croatia issued two bonds, worth a total of €1.2 billion, on the domestic capital market, to refinance a bond maturing in the second half of July, state news agency Hina said on Wednesday.

These include a four-year bond maturing in 2026 worth €400 million, with a yield of 2.17 percent, and a ten-year €800 million bond, maturing in 2032 with a yield of 3.47 percent, Hina said, citing an announcement by the Finance Ministry published on its website.

This revenue will be used to refinance a €1 billion bond maturing on 22 July, and to finance “the needs of the state budget.” The ministry added that “compared with the refinancing amount, nearly €36 million will be saved in interest annually.”

By choosing the mid- and long-term maturity bonds, the ministry “achieved the optimal level of demand on the domestic capital market, covering a wide range of institutional investors, including banks, mandatory and voluntary pension funds, insurance and investment funds, with more than 50 domestic institutional investors participating,” the unsigned statement said.

Interest from investors exceeded €1.75 billion. The issue was arranged by the Erste & Steiermarkische Bank, OTP Bank, Privredna Banka Zagreb, Raiffeisenbank Austria, and Zagrebacka Banka and co-arranged by the state-owned Hrvatska Postanska Banka.