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Bosnia's Komunalac opens subscription for maiden 665,000 euro bond

Author Iskra Pavlova
Bosnia's Komunalac opens subscription for maiden 665,000 euro bond Photo: Pixabay

BANJA LUKA (Bosnia and Herzegovina), August 28 (SeeNews) - Bosnian utility company Komunalac serving the northern town of Kozarska Dubica, said it is inviting interested investors to subscribe for its maiden bond issue worth 1.3 million marka ($737,000/665,000).

Komunalac plans to issue 13,000 14-year bonds at a price equal to their par value of 100 marka each, the company said in a public call published on the website of the Banja Luka Stock Exchange (BLSE) on Tuesday.

The securities will carry 6% annual interest.

The subscription period will open on September 11 and will close 10 days later.

The issue has a 60% success threshold.

Komunalac's total revenue shrank 17% to 1.297 million marka in 2018, while its total expenditures declined 15% to 1.277 million marka, resulting in a slim profit, the company said in a separate statement filed with the BLSE.

Komunalac provides services to 3,316 households and 369 companies and shops on the territory of the Kozarska Dubica municipality. It employed 53 people in 2018.

The Kozarska Dubica municipality controls 69% of Komunalac, followed by Banja Luka-based Group Fortis with 17%. The remainder belongs to smaller shareholders.

(1 euro = 1.95583 marka)