Second tranche of notes presented to potential investors

27 June 2017  Today, Zagreb Holding presented the issuance of the Second Tranche of Notes in the nominal amount of HRK 500,000,000.00 to potential investors. Second Tranche of Notes together with notes issued under the first tranche on 15 July 2016, in the nominal amount of HRK 1,800,000,000.00, which have been listed on the Official Market of Zagreb Stock Exchange plc, shall constitute a single integrated note issue of the Issuer, in the total nominal amount of up to HRK 2,300,000,000.00, under the ticker ZGHO-O-237A, ISIN HRZGHOO237A3, at the fixed annual interest rate of 3.875%, with date of maturity on 15 July 2023.
 
Payment of all returns derived from Notes, regardless under which tranche they were issued, is unconditionally and irrevocably guaranteed by the City of Zagreb.
 
On behalf of the Issuer and in the presence of representatives of the City of Zagreb as well as Issuing Agents, the Company was presented by President of the Management Board Ana Stojić Deban, who emphasized continuation of positive trends as well as the Group’s potential for further development, stressing at the same time stability of Zagreb Holding as a legal entity active in the current business context.
 
She reminded that funds collected from the issuance of the first tranche of domestic notes was used for redemption of Eurobond in the amount of EUR 146.3 million, which the Company issued on 10 July 2007. The rest of funds obtained from the issuance of the first tranche of domestic notes are held in the foreign currency account and together with funds that will be collected from the issuance of the second tranche, shall be used for redemption of remaining Eurobonds upon their maturity in July this year. Any amount remaining after settling financial liabilities based on existing notes, shall be used for the purpose of financing the Issuer’s capital projects.
 
Successfully completed financial restructuring ensured, among other things, refinancing at a fixed annual interest rate lower by 1.625 bp as well as reduced currency risk exposure.
 
Invested efforts have also been recognized by the renowned international credit rating agencies Standard & Poor’s and Moody’s. On 22 July 2016, the agency Standard & Poor’s upgraded Zagreb Holding credit rating from B+ to BB- and on 29 December 2016, it improved the outlook of Zagreb Holding, affirming it as stable. On 13 March 2017, Agency Moody’s improved the outlook of Zagreb Holding and on 15 May 2017, it upgraded its credit rating to Ba2, which is the same as that of the City of Zagreb and the Republic of Croatia.
 
For more detailed information on the Company’s activities on the capital market, please follow the link INVESTORS , where invitation to investors to subscribe the Second Tranche of Notes of the Company Zagreb Holding Ltd, has been published.
 
Subscription period for offers for the Second Tranche of Notes closes on 29 June 2017 at 1 p.m. (“Subscription Period”). Expected date of issuance of the Second Tranche of Notes is 3 July 2013.