Citizens to Receive First Interest Payments for ‘People’s’ Bonds Tomorrow, Totaling 48.7 Million Euros

For approximately 45 thousand citizens who invested in ‘people’s’ bonds last year, the first interest payments will be made tomorrow, March 8, totaling 48.7 million euros, the Ministry of Finance reported on Thursday.

– The Ministry of Finance will pay interest to all investors who, at the end of the day on March 7, 2024, had this bond in their securities account at the Central Clearing Depository (SKDD) – it was announced on the Ministry of Finance’s website.

As a reminder, on March 8 last year, the Ministry of Finance issued a two-year bond amounting to 1.85 billion euros, of which 1.34 billion euros were subscribed by citizens, while 515 million euros were allocated to institutional investors, with an annual interest rate of 3.65 percent. Thus, the interest is paid once a year, due on the anniversary of the issuance date, which is tomorrow, and on the maturity date of the bond, March 8, 2025. The repayment of the principal amount of the bonds is a one-time payment, scheduled for the maturity date of the bond.

‘People’s’ bonds were subscribed by citizens from February 22 to March 1 last year, with a minimum investment amount of 500 euros, and the nominal amount of one bond being one euro.

Total Interest Payments of 67.5 Million Euros

As reported today by the Ministry of Finance, a total of 67.5 million euros in due interest will be paid, of which 48.7 million euros to citizens, and the remaining part to institutional investors. The interest payments will be made to the IBAN of the investor registered in the SKDD system, that is, the IBAN recorded on the investor’s account in the SKDD where the bonds are registered.

The interest payments will be conducted by SKDD, and those who invested, for example, one thousand euros in ‘people’s’ bonds, should receive 36.5 euros in their bank account tomorrow.

Finance Minister Marko Primorac emphasized that last year’s issuance of ‘people’s’ bonds represents the largest investment by individuals in a single security issued through a public offering in the history of the Croatian capital market. Approximately 45 thousand citizens subscribed and paid for the bonds, and as the minister assessed, the high response indicates a strong trust of citizens in the securities issued by the state.

– Such issuances will continue in the future – announced Primorac in a statement that was conveyed in the announcement.

As a reminder, the Ministry of Finance issued ‘people’s’ treasury bills in November 2023 and in February this year, and a new issuance of ‘people’s’ bonds was announced by Primorac for this month.