LONDON, July 14 (IFR) - Macedonia has postponed its seven-year euro bond after an opposition party member questioned the legality of the issuance.
The issuance was delayed after a July 14 letter from a member of the Social Democratic Union of Macedonia, asserting the Republic may not have proper legal authority to issue the notes, said one of the joint lead managers in an emailed statement.
Citi, Deutsche, Erste and SG CIB were the joint lead managers on the trade.
The member said the bond issuance, if it were to proceed, may be in violation of certain laws and regulations of Macedonia.
The government believes the correspondence is politically motivated and that there is no legal basis for challenging the authorisation or issuance of the notes.
The Ministry of Justice, on behalf of the Republic, and the joint lead managers’ Macedonian counsel will issue customary legal opinions confirming the authorisation and validity of the issuance of the notes, the email said.
The lead managers counsel have also advised that “the positions asserted in the correspondence are without merit and that the Republic is duly authorised to proceed with the Offering,” it said. (Reporting by Jon Penner, IFR Markets; editing by Shankar Ramakrishnan)