The seventh tranche of commercial papers in the amount of HRK 52 million was issued yesterday by Podravka, over a 182-day period and with a nominal yield of 4.45%.

During the previous year-long programme for the issuing of commercial papers, Podravka successfully put up for sale six tranches of commercial papers in the total amount of HRK 240 million, while the current value of commercial papers in circulation amounts to HRK 130 million. All the tranches were issued in kuna without a currency clause, in denominations of HRK 1 and for a 91 to 364-day period. The issuing of the fourth tranche of commercial papers, which had a nominal yield of 2.85%, made Podravka’s kuna financing the most efficient in the country.

In cooperation with Privredna Banka Zagreb, Podravka set up the Programme for the issuing of commercial papers in the amount of HRK 150 million. The Programme has allowed for Podravka’s financing for a period of up to one year by the issuing of tranches of commercial papers according to market requirements and conditions.

The successful issuing of the tranches of commercial papers, which has enabled Podravka to replace short-term credits and reduce the cost of financing, has shown that the decision to set up the Programme for the issuing of commercial papers was wholly justified. Also, Podravka’s debts incurred through the issuing of commercial paper tranches in kuna without a currency clause has optimised the currency structure of indebtedness.

Podravka’s tranches of commercial papers have attracted investors, primarily banks and investment funds. By having an active role in the capital market, Podravka has gained access to a flexible and competitive source of short-term finance. For this reason, Podravka continues to satisfy its needs for short-term finance through the Programme for the issuing of commercial papers.

The arranger, agent and dealer of the Programme for the issuing of commercial papers is Privredna Banka Zagreb. All the tranches of commercial papers have been listed on the Zagreb Stock Exchange and quoted as short-term securities, with Privredna Banka Zagreb as sponsor for the listing.