LONDON, May 13 (IFR) - Montenegro, rated Ba3 by Moody’s and BB- by Standard & Poor’s, has launched a 280m five-year bond at a yield of 5.50%, the tight end of final guidance.
Earlier this morning the sovereign announced final yield guidance of 5.625% (+/-12.5bp) having begun marketing the transaction on Monday in the high 5% area.
Last week, Montenegro announced the bond will have a minimum yield of 5.50%.
The new issue is being undertaken in conjunction with a tender and exchange offer for its outstanding 2015 and 2016 notes, which closed on Monday.
Indicative results show that a total amount of 2.087m of the two notes has been validly tendered by investors for cash purchase, while 81.757m has been submitted as part of the exchange. Therefore, of the 280m raised, about 85m will be issued in connection with the exchange offer.
Citigroup, Deutsche Bank and Erste Bank are the lead managers and arrangers of the new issue, which will price later today, and the liability management exercise. (Reporting by Sudip Roy; editing by Anil Mayre)