Serbian Bonds Included in J.P. Morgan Index – Potential Investments on the Radar

Source: eKapija Thursday, 01.07.2021. 11:13
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The bonds of the Republic of Serbia are officially included in the J.P. Morgan index of government bonds of developing countries (GBI-EM Global Diversified Index). Said index includes government bonds denominated in the local currency which are used for regular trade, with fixed coupon rates, and which are easily accessible to foreign investors.

– This is a great success for our country and another confirmation of the value and the quality of Serbian bonds in the world market. The J.P. Morgan index is followed by all serious professional investors in the world, which means that they will have Serbia on the radar for potential investments. We have worked a lot on this in the past period, especially in the context of development of the local capital market. Serbia is now a country which has earned trust in an international investment environment – emphasized Finance Minister Sinisa Mali.

He added that Serbia had achieved considerable progress in boosting the liquidity of the secondary market of state securities, which contributed to having Serbian bonds included in the renowned J.P. Morgan Index, while at the same time increasing the attractiveness of the local market and the inflow of new investments.

– Since February this year, when the inclusion in the index was announced, what’s been noticeable is a considerable increase in the trading in the secondary market and the arrival of new purchasers of said bonds, foreign investment funds, which confirm the fact of how important it is to be part of the GBI-EM Global Diversified Index. This also opens the door to better conditions for the economy and local and international investors – the minister said and added that the trading of these bonds in the secondary market in June, until the inclusion, had grown by over 260% compared to January, before J.P. Morgan announced the information about the date of inclusion.

Mali also said that this achievement also confirmed all the activities that the Ministry of Finance carried out regarding the development of the capital market, and to which the Strategy of the Development of the Capital Market, whose adoption is expected for September, will contribute the most.


– This kind of a strategy is adopted for the first time, and the goal is to accelerate the development of the capital market, to improve the offer of financial instruments and to increase local and foreign investments, which will further help increase the GDP growth. In addition to said strategy, in the past period, systemic laws have been adopted, which are also directed at improving the development of that market. So, our main goal is for the Serbian economy to grow and we can only achieve high growth rates if we have a stable and developed capital market – Mali concluded.

In addition to the GBI-EM Global Diversified Index, Serbia is also entering the GBI-Aggregate (GBI-AGG).

Three dinar-denominated benchmark bonds with due dates of January 11, 2026 (RSMFRSD89592), February 6, 2028 (RSMFRSD55940), and August 20, 2032 (RSMFRSD86176) are included in the index.

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