Telekom Srbija pushing for €200m corporate bond issue

Telekom Srbija pushing for €200m corporate bond issue

Serbian state-owned operator Telekom Srbija is looking to finance its debt with a corporate bond sale that it expects to raise around €200 milllion ($236.52 million).

According to Reuters, the operator stated its intention of issuing 2.35 million five-year corporate bonds with a nominal value of 10,000 dinars ($100.38), for “the purpose [of] financing…issuer’s business needs, including refinancing of existing financial obligations and financing the improvement of business activities.”

Telekom Srbija is the country’s largest provider of internet and cable TV services. It also controls Montenegro’s M:Tel and is a majority shareholder in Bosnia’s second biggest operator, Telekom Srpske.

According to Telekom Srbija’s managing director Predrag Culibrk, the operator’s debt stands at €1.1 billion as of 14th August. Its revenue for 2019 was up 7% to 133.7 billion dinars, while operating profit rose 25% to 48.4 billion dinars.

A meeting of Telekom Srbija shareholders is scheduled for 15th September; if they approve the issue of corporate bonds, these would yield as much as a three-month BELIBOR (Belgrade Interbank Offered Rate).

The Serbian state is the largest shareholder in the operator, holding 58.11%, while the firm itself has a 20% stake. Its employees own 6.94% while the Serbian populace owns 14.95%.

In 2015, the government attempted to sell a majority stake in Telekom Srbija during a privatisation drive and received six offers, but declined all of them on the grounds that they had undervalued the holding.

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