North Macedonia’s Ministry of Finance said on January 13 that it had successfully completed the auction for the issuance of the country’s 10th Eurobond, raising a total of €1bn through two equal tranches of €500mn each.

The Eurobond was structured with maturities of four and eight years, a significant milestone for the country, as the placement of an eight-year bond has not been achieved for more than two decades.

The ministry said this reflected strong investor confidence in the government’s reform agenda and macroeconomic policies.

Investor interest was robust from the outset. Within just one hour of the announcement of the initial interest rates, demand reached €2bn, supported by a diversified global investor base that included major institutional investors from Germany, the United States and the United Kingdom.

Before the opening of the US market, the order book had grown to €3bn, while total demand later exceeded €4bn.

More than 150 international investors participated in the process, providing further confirmation of confidence in the country’s fiscal strategy and financial stability.

The interest rates were set at 3.875% for the four-year tranche and 4.750% for the eight-year tranche, among the most favourable levels achieved in relation to the Euribor reference rate over the past 20 years.

The ministry said the issuance timing and structure enabled a significant reduction in yields, bringing them close to those of countries with investment-grade credit ratings. Bank of America coordinated the transaction.

The proceeds, planned in the 2026 budget, will be used to refinance the €700mn Eurobond issued in 2020 and to cover part of the budget deficit, supporting development projects and responsible public debt management.

On January 12, Fitch Ratings assigned a 'BB+' rating with a stable outlook to North Macedonia’s proposed euro-denominated bonds. The net proceeds will be used for 2026 budget support, a cash tender offer for the outstanding €700mn notes, and refinancing of maturing government debt.

Fitch’s rating aligns with the country’s Long-Term Foreign-Currency Issuer Default Rating (IDR), which it affirmed at 'BB+' with a stable outlook on September 19, 2025.