Brokers: Telecom to issue € 200 million bonds due to debt

Source: N1

The Supervisory Board of the telecommunications operator Telekom Srbija called for the Shareholders' Extraordinary General Meeting on September 15, to decide about issuing 200 million Euro corporate bonds due to financing its debt, the broker's house Momentum said on Tuesday.

„The company plans to issue corporate bonds with a nominal value of about 200 million Euros (23.5 billion RSD) and 2.35 million corporate bonds with an individual nominal value of 79.57 Euro(10,000 RSD),“ the statement said.

It added the reason behind the decision was „to finance the company’s business needs, including refinancing of existing financial obligations and financing the improvement of business activities“.

„After a series of takeovers of domestic cable operators, Telecom’s net debt reached 1.15 billion Euro (135.5 billion RSD) at the end of 2019,“ the statement said.

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 The planned maturity of the bonds is five years, and the interest rate is up to 3.25 percent, plus the three-month BELIBOR, it added.

The bonds are intended for qualified investors, and the issue will be carried out without publishing a prospectus, the statement said.