Interest in HEP is bonds more than 5 times the planned issue

International capital market showed trust in HEP Group Restructuring Program and investment cycle. The transaction involved almost 200 investors from more than 20 countries.

Hrvatska elektroprivreda d.d. set the price terms for a 500 million dollar eurobond issue with a coupon of 6.00%, yield of 6.00 and maturity in 2017. The demand for this issued was exceptionally strong, amounting to more than 2.7 billion dollars. The transaction involved almost 200 investors from more than 20 countries, from major international institutional investors to many banks and insurance companies. The bonds were issued without government guarantees, showing that HEP’s credit rating, Restructuring Program adopted by the new Management Board as well as the investment plan have been recognized on a world- market and that the company enjoys trust of first-class international investors.

HEP will use the funds raised in this transaction for repayment of some of the existing debt which will strengthen the structure of its balance sheet and extend maturity of its total debt. This will create the conditions for the planned strong investment cycle which is in line with the Government’s economic recovery strategy. This transaction clearly points to the strong support of HEP, as a 100-percent state-owned company, by the international investment community, proving that the international community has recognized and valued the efforts of Croatia’s Government in the restructuring of the public sector. As from today HEP will be under the microscope of the largest institutional investors, implying new and different patterns of HEP’s conduct and operations.