The Second Issuance of Hipotekarna Bank Subordinated Bonds

The Second Issuance of Hipotekarna Bank Subordinated Bonds



  •  Securities Commission adopted a Resolution on the successful second issuance of Hipotekarna Bank AD Podgorica subordinated bonds.

 The entire bond issuance process was implemented in line with the Securities Act and the Commission Regulation. The buyers of the bonds were also registered with the Central Depository Agency. 

Hipotekarna Bank has successfully issued bonds totaling four million euros. Secondary trading in these Hipotekarna Bank AD Podgorica corporate bonds is now possible at Montenegro Stock Exchange (the trading symbol is HBO2). 

By way of reminder, Hipotekarna Bank is the only bank in the Montenegrin banking sector that successfully issue bonds in the open market back in 2014. The amount of this issue was nine million euro, with 6% interest rate. All the bonds were sold, which is a reflection of investors’ trust in the Bank business operations. This is further supported by the fact that Hipotekarna Bank bonds from that issue are among the best traded securities in the secondary market of Montenegro Stock Exchange. This trust is now confirmed with another successful issuance of bonds. 

“Because existing owners of Hipotekarna Bank bonds are satisfied with their investment and would hardly opt for a sale of their lucrative financial instrument, we have decided to organize for  our selected VIP clients a new emission of the second series of bonds of similar characteristics, this time closed to the public, and with a slightly shorter maturity term of 6 years, in response to the requests of our clients, and a highly attractive 5.9% interest rate. Given the success of the previous issuance, the issuance of this instrument has met with an outstanding demand, and have therefore decided not to open this issuance to the public. Todays professionals but also local investors have a more realistic and a better founded perception of both the return and the risks arising from the instruments that they invest in. A significant number of clients who are up to date on the financial trends and are of substantial financial potential have identified these trends and are now placing ever bigger capital with Hipotekarna Bank investment banking services than with classic banking savings products. 

Guided by the positive attitude of our clients and market needs, we will continue striving to meet the our clients’s needs in a similar fashion in the future as well, thus providing to the bank a stable funding source, with positive effects on the Bank capital, all in line with the Basel standards” - said Esad Zaimovic, chief executive director of Hipotekarna Bank.


PROSPECTUS for Hipotekarna Bank second issuance of subordinated bonds in an offering closed to the public