Atlantic Changes the Cheapest Debt Ever with New Bonds

Atlantic Grupa will issue another bond offering. As announced on Tuesday at the Zagreb Stock Exchange, Atlantic is considering the issuance of new five-year bonds with a total targeted nominal amount of 80 million euros. Along with their listing on the Official Market of the Zagreb Stock Exchange, there will also be the possibility of exchanging existing bonds for new bonds.

It is worth noting that these are bonds issued at the end of 2020, maturing on December 11 of this year. They raised 300 million kuna at that time and entered the history of the domestic capital market as they carried an interest rate of 0.87 percent, which was the lowest borrowing cost ever for a company on the Croatian capital market. Given the current conditions and the level of interest rates set by the European Central Bank, it is expected that the new tranche of bonds will have a significantly higher interest rate.

The planned time for the issuance of this year’s bonds is the end of June 2025, and no later than December 31, the company announced.

– The final time, amount, and yield of the issuance will be determined in the final terms. The transaction will be conducted solely subject to acceptable market conditions, depending on the state of the capital market, the absence of significant negative changes in operations, results, or business prospects of the Company, and subject to obtaining all regulatory approvals in accordance with applicable regulations – the company emphasized.

The issuance of this bond offering involves Erste Bank, OTP Bank, Privredna Banka Zagreb, Raiffeisenbank Austria, and Zagrebačka Banka as agents and sponsors of the issuance, as well as the law firm Šavorić & Partneri as legal advisor.

Atlantic has a long tradition of borrowing in the capital market. As early as 2006, the company borrowed through bonds for five years for 115 million kuna at an interest rate of 5.75 percent. A new issuance of the same amount was placed in 2011, also for five years, at an interest rate of 6.75 percent. In June 2016, five-year bonds worth 200 million kuna were issued, but at a significantly lower interest rate of 3.12 percent.