Telekom Serbia collects USD 900 million through issue of bonds in London

Telekom Serbia has issued international corporate bonds worth USD 900 million with an interest rate of 7% in London, reports Bloomberg Adria. The initial interest rate was 7.5%, but it was reduced before the trading began.

The bonds are due in five years, with the possibility of withdrawal after two, three, or four years. The demand was five times higher than the supply and amounted to USD 5.5 billion, writes Bloomberg Adria.

Big banks such as BNP Paribas, Bank of America and Deutsche Bank took part in reaching the agreements. The representatives of the company held meetings with the investors both virtually and in person in London.

S&P Global has rated the bonds BB- with a stable outlook, emphasizing the integrated mobile and landline network, the good coverage with optical internet and the strong brand.

Telekom Srbija is incurring this debt in order to refinance the obligations which are due between 2024 and 2026. The company’s ratio leverage (debt relative to capital) is expected to reach 5.2 this year, but might drop to 4.2 in 2025.

Fitch has rated the bonds B+ with a positive outlook, emphasizing the company’s leading position in the local market.

Telekom first issued bonds in September 2020, in the amount of EUR 200 million.

The majority shareholder of Telekom Srbija, with a 58.11% stake, is the Republic of Serbia.

Telekom Srbija a.d. Beograd

Telekom Srbija ad Beograd

BNP Paribas

Bank of America

Deutsche Bank

Fitch

S and P Global

Telekoma Srbija bonds