Croatia Wrapping Up Eurobond Roadshow in U.S. Today, Hypo Says

Croatia, the next European Union member, will complete its roadshow for a new bond issue today in line with a plan to tap the U.S. market this spring, Hypo Alpe- Adria Bank d.d. in Zagreb said.

With the roadshow for a $1.5 billion, 10-year bond ending, investors will be watching for any pricing information on the sale, which may take place the coming days, the bank said in a note to investors today.

“We still see the issue priced around 5.5 percent to 5.7 percent,” Hypo Alpe-Adria analysts including Hrvoje Stojic wrote in the note.

Croatia wants to borrow in dollars for the second time in less than a year as optimism about the global economic recovery and extra liquidity from central banks push investors to higher- yielding assets. In February it picked Deutsche Bank AG, JPMorgan Chase & Co., Merrill Lynch & Co. Inc., and Goldman Sachs Group Inc. to manage the sale.

Government officials were not immediately available to comment on the state of the road show, which started in the U.S. on March 18.

Moody’s Investors Service cut the ex-Yugoslav republic’s bond rating to Ba1 from Baa3 on Feb. 1, citing a stalled recovery, lack of budget discipline and vulnerability to external shocks. Standard & Poor’s cut Croatia to junk in December.

To contact the reporter on this story: Gordana Filipovic in Belgrade at gfilipovic@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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