For the first Eurobonds of the Federation of BiH on the London Stock Exchange, which intensities intends to debust € 350 million, great interest, the indicator is reported.
According to GlobalCapital, the Federation of Bosnia and Herzegovina provided more than 1.8 billion euros orders for its Eurobond Debt. At first, it was talked about the yield of approximately six percent, but due to strong demand, the final yield was placed at 5.5 percent. The bonds, which they reach in July 2030, were managed by Bank of America, Deutsche Bank and UniCredit. This strong result indicates a significant interest investor for the debut emissions of the Federation Bond.
According to the London Stock Exchange, Deutsche Bank AG, Merrill Lynch International and UniCredit Bank are stabilization managers for issuing bonds. Stabilization period is expected to last from 10. July 2025. To (no later than) 28. Augusta 2025.
Securities
BiH Federation Securities are not registered according to the 1933 United States Securities Act and will not be offered in the United States. The offer is primarily focused with qualified investors in the European economic space and the United Kingdom.
This means the first international bond issuance for the Federation of Bosnia and Herzegovina, which potentially establishes its presence in global debt markets.
We remind you that in June 2024. The Federation of BiH received the first credit rating from the Bonnite Agency S & P Global Ratings – ‘B + / B’. Almost a year later, 23. May 2025, S & P Global Ratings confirmed ‘B + / B’ long-term and short-term credit rating of BiH is limited by the regular escalation of political tensions between the constituent entities, the FBiH and the Republic of Srpska, and central authorities in the country.
Political balance
Moreover, subtle political balance with the Government and Parliament complicates decision-making in the sphere of the budget, which leads to delays in the approval and budget implementation, as well as weak consumption disciplines, including state firms.
Political complications delay the country’s progress towards EU accession and reduce investor’s appetite for projects in the Federation, according to the S & P project, that the burden of debt will remain moderate.
Total debt managed by the Federal Ministry of Finance on 31. 3. 2025 amounted to 6,441,283,255 KM, of which 1,566,2202000 km, and on the outer 4,875,063,049 km, writes Avaz.
