Telekom shareholders support issue of corporate bonds worth EUR 400 to 850 million

The General Assembly of Telekom Srbija supported the decision on the issue of long-term, unsecured and unsubordinated bonds of Telekom Srbija a.d. Beograd at today’s extraordinary session, as confirmed for Biznis.rs from the biggest domestic TC company.

Telekom has thereby been supported by its shareholders to offer corporate bonds worth EUR 400 to 850 million (or the matching amount in U.S. dollars) to qualified investors in the international financial market.

The CEO of Telekom, Vladimir Lucic, said in an interview for the October issue of the Biznis.rs monthly that, up till that point, no company from the Western Balkans had done what Telekom Srbija was doing.

– We are getting a credit rating, we are entering the European market and issuing corporate bonds in that market. We had already planned to do so, but the outbreak of the war in Ukraine and the subsequent instability in the international capital markets and the growth of the interest rates prevented us from doing so – Lucic said for Biznis.rs.

In this conversation, he emphasized that, regarding the corporate bond, it was not Telekom Srbija’s aim to increase the debt, but only to refinance a part of the less favorable credits.

– From this year already, we are operating with a positive cash-flow and we will practically start reducing the debt. We believe that it is the right moment to do so, because the trend of the lowering of interest rates has begun – said Lucic.

Telekom Srbija a.d. Beograd

Telekom Srbija

Vladimir Lučić

General Assembly of Telekom

corporate bonds

European market

credit refinancing