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Banca Intesa sponsor of the City of Šabac municipal bond issue

Banca Intesa and the City of Šabac signed an Agreement on sponsoring the first municipal bond issue worth a total of RSD 400 million, intended for providing funds for financing infrastructural projects in the city. The Agreement was signed by Slađana Jelić, member of the Executive Board of Banca Intesa and Head of the Corporate Banking Division and Nebojša Zelenović, Mayor of Šabac.

This is the first public municipal bond issue on the territory of the Republic of Serbia intended not only for institutional investors - foreign and domestic legal entities, but also for natural ones. Furthermore, it is planned that the bonds of the City of Šabac become the first municipal securities to be listed on the Belgrade Stock Exchange, which will enable investors to trade on the secondary market.

Bonds with nominal value of RSD 10,000 indexed in the Euro according to the National Bank of Serbia average exchange rate will be issued with a fixed interest rate of 6% on an annual level and a maturity date of seven years, including a two year grace period.

Banka Intesa has a long experience in operations with local governments, cooperating with over 90 out of a total of 160 municipalities in Serbia, and participating with around 50% in total loans for local governments on the banking sector level. Also, in 2012 the bank was the sponsor of municipal bonds issue for the City of Pančevo in the amount of RSD 107 million.

 

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