The issue of a €1.25 billion euro-denominated bond on the international market, which is due to mature in 2032, confirms that Croatia "enjoys the status of an attractive bond issuer whom investors trust," Prime Minister, Andrej Plenkovic, said at the start of a televised cabinet meeting on Thursday.

The yearly coupon rate was set at 2.875 percent, and the yield at 2.975 percent. The funding will be used to finance the rescheduling of an earlier €1.25 billion euro-denominated bond due on 30 May, which came with a 3.875 percent interest rate.

“The terms we achieved confirm the status of Croatia as an attractive issuer. This also proves the strong confidence of investors in the quality of Croatia’s debt on the international market, and this has led to the fact that Croatia has paved the way for the euro-bond issuance for other countries in the region,” Plenkovic told his ministers.

Despite rising inflation, tighter monetary policies by the central bank, increased interest rates and market yields, and the Russia-Ukraine conflict, the international investment community’s interest was “very significant,” Croatia’s finance ministry said on Wednesday.

(€1 = 7.55 kuna)