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<p align="center"><b>PLIVA and Privredna banka Zagreb sign a contract on issuing |
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commercial papers on the Croatian market. This HRK 400 million worth programme |
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will initiate the corporate debt market in Croatia</b></p> |
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<p>Zagreb, 11th December 1998 </p> |
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<p>On 11 December 1998, PLIVA, the leading pharmaceutical company from Central |
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and Eastern Europe, signed a contract with Privredna banka Zagreb for issuing |
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and selling PLIVAs commercial papers on the Croatian money market. The contract |
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defines a HRK 400 million commercial paper programme. PLIVA will be able to |
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issue commercial notes up to the specified amount, and place them on the market |
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via Privredna banka Zagreb. Privredna banka Zagreb will be the issuing and payment |
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agent in this transaction. </p> |
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<p>PLIVA intends to offer its commercial paper primarily to institutional investors |
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and banks, but also to Croatian citizens through Privredna bankas retail network. |
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The nominal value of one commercial paper will amount to HRK 10,000, with maturity |
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of one, three or six months. It is important to stress that Privredna banka |
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Zagreb has taken upon itself to maintain the liquidity of the secondary market |
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and act as a market-maker. </p> |
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<p>With this transaction, PLIVA is enhancing its short-term debt sources. After |
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signing the Euro commercial papers contract last week and signing the contract |
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on issuing domestic commercial papers, PLIVA can issue short-term securities |
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as a debt instrument both on the European and Croatian markets. The two contracts |
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are not mutually connected, apart from them both involving the same type of |
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security and the same issuer.</p> |
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<p> Commenting on the transaction, Zeljko Covic, President of PLIVAs Management |
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Board said: By issuing its commercial papers, PLIVA wants to increase its short-term |
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debt capacities on the Croatian market and will do that in a completely new |
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way for Croatian standards. We are aware that the debt market in Croatia is |
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not developed enough to fulfil the needs of corporations. That is why we are |
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determined to, together with the Arranger of the transaction, initiate its creation |
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and endure in it. We expect that PLIVAs contribution to the development of |
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the debt instrument market in Croatia will be as significant as was PLIVAs |
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listing on the London and Zagreb Market Exchanges.</p> |