State-owned Telekom Srbija has proposed to its shareholders to issue five-year corporate bonds worth 23.5 billion dinars ($235 million/200 million euro) to refinance debt and invest in business improvements, it said.
The company plans to issue 2.35 million corporate bonds with a nominal value of 10,000 dinars apiece without publishing a prospectus, Telekom Srbija said in a document posted on its website on Monday.
The bonds will bear an annual coupon not higher than three-month BELIBOR plus 3.25 percentage points and will be sold to renowned financial institutions in Serbia, with which Telekom Srbija has successful business cooperation, it said.
Telekom Srbija’s shareholders will vote on the proposal at an extraordinary meeting on September 15.
In May, Serbia’s central bank, NBS, included domestic corporate bonds in the list of securities it may acquire to boost the development of the country’s corporate securities market. The central bank will be able to acquire only securities issued before December 31, 2020, with a maturity of up to five years, it said in a notice.
Serbia’s President Aleksandar Vucic said earlier the government plans to provide state aid to power utility EPS, flag carrier Air Serbia and Telekom Srbija to help them deal with the economic consequences of the coronavirus outbreak through the subscription of a capital increase or the purchase of corporate bonds, SeeNews reports.
