The Republic of Srpska has successfully completed a bond issuance on the international capital market of the benchmark Eurobond in the amount of EUR 500 million, carrying a fixed interest rate of 6.25%, with maturity in April 2031.

This transaction represents a significant milestone on the international capital market, taking into account the following key factors:

• The Republic of Srpska reopened access to the international capital market following the outbreak of the conflict in the Middle East, becoming the first emerging market issuer from the European continent to execute an issuance after the start of the conflict, thereby demonstrating leadership capabilities amid heightened volatility in global financial markets. The investor base was geographically diversified, with a dominant share of investors purchasing Republic of Srpska public debt instruments for the first time, including some of the largest U.S. pension funds and insurance companies.
• This was the Republic of Srpska's first benchmark bond listed on the London Stock Exchange, as well as the largest international borrowing transaction undertaken by an entity to date, successfully executed despite turbulent market conditions caused by the conflict in the Middle East.
• The transaction generated the highest level of demand in the Republic of Srpska's borrowing history, almost three times higher than during its inaugural Eurobond issuance in 2021, clearly confirming investor confidence in the policies pursued by the leadership of the Republic of Srpska on the international stage. Demand exceeded EUR 1 billion within just a few hours following the announcement of the transaction.
• Given the changed circumstances on international financial markets, it is evident that a significant relative reduction in borrowing costs was achieved compared to the 2021 transaction. More specifically, the spread was practically halved, indicating an improved positioning of the Republic of Srpska on the international capital market, supported by the development of domestic economic conditions, as well as cooperation with partners from the European Union and the United States of America. This is particularly significant considering that global interest rates today are approximately three times higher than at the time of the inaugural issuance.
• The transaction represents an example of responsible and strategic public debt management, with the Republic of Srpska becoming the fourth issuer from the region to access the international capital market this year, following Slovenia and Croatia, both European Union member states, and North Macedonia, a candidate country for EU membership.
• The borrowing was executed at a fixed interest rate, thereby securing protection against potential future increases in interest rates already announced by the European Central Bank.
• The successful completion of the transaction followed intensive strategic activities undertaken by the Government and the Ministry of Finance at the international level, including direct engagement with more than fifty of the world's largest investors, who expressed confidence in the Ministry of Finance team and the Government of the Republic of Srpska.
  

History teaches us that geopolitical crises can escalate rapidly and trigger strong inflationary shocks, such as the one experienced in 2022. In this context, timely public debt management under conditions of heightened geopolitical risk represents one of the key responsibilities of every responsible government.