Mali: Revenues from LSE bond issue to go to infrastructure

BELGRADE - Serbian Finance Minister Sinisa Mali said on Friday Serbia had raised 1.75 bln dollars in a London Stock Exchange bond issue and that the funds would be invested in infrastructure.

"We will use the money for further investments in infrastructure - roads, high speed rail lines, schools, hospitals, and also in the green agenda, construction of sewage networks, waste water treatment plants - everything that improves the quality of life of Serbian citizens," Mali told Tanjug.

He said Thursday's bond issue was a huge success as over 500 investors, including the world's top investment funds, had expressed interest in Serbian bonds.

"They were offering us over 11 bln dollars, which is the greatest-ever interest and the highest-ever offer," he said.

"We fared better than Romania, which is an EU member state and has investment grade rating. We are at about the same level as Hungary and we are far better than Turkey - I am talking about these countries because they, too, issued dollar bonds, which makes them comparable to us," Mali explained.

He said the great investor interest confirmed Serbia's economic policy was good and was a proof of trust in the country's plans for the future and aspirations to high growth rates.

Thursday's success will help Serbia's economic growth in the toughest-ever global economic situation, initially due to the COVID-19 crisis and now to the situation in Ukraine and the energy situation, he said.

"We want to invest in infrastructure and we want the government to encourage growth. We had FDI of 4.4 bln euros last year, so private investors are investing, too, factories are being opened, people are getting jobs and we have a record-low unemployment rate," Mali said.