April 2011
EUR 37 million for the Renovation of Sveti Stefan
The Sarajevo Business Forum 2011
An agreement regarding support for the renovation project for the Sveti Stefan Hotel and for the construction of the Kraljičina Plaza Hotel was signed by the Minister of Sustainable Development and Tourism and by representatives of the Budvanska Rivijera, including companies from the Miločer Hotel Group, Adriatic Properties, Aidway Investments Limited, General Hotel Menagament Limited, Aman resorts Management B.V. and the European Bank for Reconstruction and Development.This financial arrangement implies that €37 million will definitely be available for the realization of work on these hotels.
The Second International Investment Conference titled „Sarajevo Business Forum 2011“ was held in Sarajevo from 6th to 8th April. It promoted 153 projects worth €14.7 billion. Most projects came from tourism sector, total of 46, and their value amounts to €528 million. Infrastructure sector promoted 31 projects worth €8.98 billion, 30 projects from energy sector worth €4.83 billion and 26 agriculture projects worth €339 million. Nine projects worth €18.56 million represented wood industry, financial segment had eight projects worth €33 million and three projects came from education sector worth €10.18 million.
Great Interest in Apartments in Luxurious Marina
Montenegro and Belgrade on top of list of tourist destinations
The interest of buyers in housing units at the luxurious marina, Porto Montenegro in Tivat, has exceeded all expectations. The complex is being built at a former military shipyard by the Canadian billionaire Peter Munk. The construction of the fourth facility has now started, and preparations to start with the fifth areal ready in progress. The prices of around a hundred apartments range from €180.000 to €1.8 million. Most of the buyers are from Great Britain, Russia, Austria, Germany and Switzerland. Canadian businessman, stated that elite tourism, sailing and marinas in the Adriatic and the Mediterranean have an excellent future. He pointed out that Montenegro’s advantage in yachting tourism is due to the fact that traditional destinations for this form of tourism are over crowded and that prices are generally too high.
Montenegro and Belgrade stand on the top of a list of 11 tourist destinations not to miss in 2011. The list has been published in the tourism section of the Milan-based economic daily Il Sole 24 Ore.
Negotiations With Low-Cost Carriers
Montenegro Sold €180 Million Eurobonds
With the establishment of low-cost airline carriers, tourists and Montenegrin citizens would have the opportunity of travelling from Montenegro to European destinations at considerably lower prices. This was stated in preliminary negotiations between the working team of the government of Montenegro, including representatives from the Ministry of Sustainable Development and Tourism, the Ministry of Transport and Maritime Affairs, the public company Airports of Montenegro and the National Tourism Organization, and the management of Ryanair and Wizz Air.
Montenegro has successfully placed a five-year Eurobond issue worth €180 million ($256 million) – the Ministry of Finance said. This transaction was preceded by a three-day road show with visits to London, Geneva, Zurich, Frankfurt and Vienna, where representatives of the Ministry of Finance and the Central Bank met with a number of investors and presented economic and fiscal indicators on Montenegro. The issued bonds carry an annual fixed coupon of 7.25%.
Belgrade follows Montenegro on the list of the most popular tourist destinations in the world to visit in 2011, where the Serbian capital and Montenegro having been presented in the Italian newspaper as the world’s most attractive destinations when it comes to partying. Il Sole 24 Ore points out the Belgrade Design Week, which should be held on May 26-28, and its accompanying events, as one of the most important international festivals, well worth traveling to Belgrade.
Montenegro, as last time, attracted a large number of investors. The fresh Eurobond issue was more than twice oversubscribed. A total of 67 investors from 21 countries became bondholders. The issue’s lead managers were JP Morgan and HSBC, while London-based Linklaters acted as legal advisors. The Montenegrin government will use the bond proceeds to finance capital spending and refinance debt.
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