BELGRADE (Serbia), September 16 (SeeNews) – The shareholders of Telekom Srbija decided to issue five-year corporate bonds worth 23.5 billion dinars ($237 million/200 million euro) to refinance debt and invest in business improvements, the majority state-owned company said.
The shareholders approved the bond issuance at a meeting on September 15, the company said in a statement on Tuesday.
The telco plans to issue 2.35 million corporate bonds of 10,000 dinars in par value each to qualified investors, without publishing a prospectus. The bonds will carry a coupon equal to a three-month BELIBOR plus 2.95 percentage points.
In May, Serbia's central bank included domestic corporate bonds in the list of securities it can 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 maturity of up to five years.
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 the companies deal with the economic consequences of the coronavirus outbreak through the subscription of a capital increase or the purchase of corporate bonds.
(1 euro = 117.610 dinars)
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