BELGRADE, Aug 25 (Reuters) - Serbia’s state-owned Telekom Srbija plans raise about 200 million euros ($236.52 million) via a corporate bond sale to help to finance its debt, the company said on Tuesday.
Telekom Srbija said on its website it planned to issue 2.35 million five-year corporate bonds with a nominal value of 10,000 dinars ($100.38).
“The purpose ... is financing of issuer’s business needs, including refinancing of existing financial obligations and financing the improvement of business activities,” it said.
Telekom Srbija is the largest internet and cable TV provider in Serbia, a majority shareholder in Bosnia’s second-largest telecom operator Telekom Srpske and it controls Montenegrin mobile operator M:Tel.
On August 14, Telekom Srbija’s managing director Predrag Culibrk said its bank debt reached around 1.1 billion euros. Telekom Srbija’s revenues grew by 7% to 133.7 billion dinars in 2019, while its operating profit increased by 25% to 48.4 billion dinars.
If approved by shareholders at a September 15 meeting, the corporate bonds would yield up to three-month BELIBOR or Belgrade Interbank Offered Rate, which on Tuesday stood at 1.02%% plus 3.25 percentage points per year, the company said on its website.
Serbia owns 58.11% of Telekom Srbija. The company holds 20%, while employees own 6.94% and Serbian citizens 14.95%.
Serbia tried to sell a majority stake in Telekom Srbija in 2015 as it sought to offload some state assets, but rejected all six offers as too low. ($1 = 0.8456 euros) (Reporting by Aleksandar Vasovic; Editing by Jane Merriman)
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