The listing of bonds on the Official Market of the Zagreb Stock Exchange

A contract between Podravka and the Zagreb Stock Exchange was signed in Zagreb on the occasion of the listing of Podravka’s bonds on the Official Market of the Zagreb Stock Exchange. The contract was signed by Darko Marinac, President of the Podravka Management Board and Marinko Papuga, Director of the Zagreb Stock Exchange. Representatives of Privredna Banka Zagreb d.d. and Zagrebačka Banka d.d. also attended the signing of the contract.

The bond issue is valued at EUR 27 million, with a 3-year maturity and a fixed interest rate of 5.00%. The date of the bond issue is 20 February 2004, which is also when the bonds will be listed on the Official Market of the Zagreb Stock Exchange. Annual interest rate payments will be made in the kuna counter value of the euro amount calculated on the basis of the average exchange rate of the Croatian National Bank on the day of payment.

The Organisers, Agents and Sponsors of the bond issue are Privredna Bank Zagreb d.d. and Zagrebačka Bank d.d., who are also the sponsors of the listing of the bonds on the Official Market of the Zagreb Stock Exchange.

After its successful performance in the capital market with commercial papers, Podravka will use this bond issue to expand its existing base of investors in the domestic capital market, and restructure its liabilities by extending their maturity rate, which will free up the limits with banks for short-term financing. The funds collected in the bond issue will be used to refinance a part of Podravka’s short-term liabilities.