Federation of BiH to Borrow Around 350 Million Euros on the London Stock Exchange

(Patria) - The Federation of BiH is issuing its bonds on the London Stock Exchange, marking the first time this BiH entity enters the international financial market.

The planned bond sale ranges from 300 to 350 million euros, with a five-year maturity, Bloomberg reported.

The roadshow was launched on July 7, the auction is expected to take place on July 17, and the goal is to close the deal in the second half of this month.

The banks or investment houses mandated to organize and lead the bond issuance process for the FBiH are Bank of America Securities, Deutsche Bank, and UniCredit, according to informed sources.

As stabilization managers, i.e., those with an additional role to stabilize the bond price if necessary when trading begins, Deutsche Bank Aktiengesellschaft, Merrill Lynch International, and UniCredit Bank are listed, as visible on the London Stock Exchange.

The stabilization period runs from today until August 28.

The offering is intended for professional investors and qualified investors under EU and UK regulations.

That the FBiH is considering borrowing on a foreign stock exchange and preparing a bond issuance was also confirmed through the borrowing strategy for 2025, which states that in the second half of this year, the first issuance of eurobonds on the international financial market is planned in the amount of 300 to 350 million euros.

The goal of the issuance is to raise funds for financing the FBiH budget for 2025, while expanding the investor base for FBiH's long-term debt.

"The primary instruments for financing the budget of the Federation of BiH and capital investments in 2025 are external long-term loans from international financial institutions, the issuance of eurobonds on the international financial market, and short-term and long-term borrowing on the domestic capital market," stated in the Annual Borrowing Plan of the Federal Ministry of Finance.