The company Telekom Serbia has broadcast international corporate Eurobonds on the stock exchange in Dublin in the value of 900 million US dollars, it was announced from this company.
As the company announced, there was great interest in Telekom's eurobonds, which had a positive effect on the reduction of the interest rate, which further improved the financing conditions, writes Beta.
The CEO of Telekom Srbija, Vladimir Lučić, said that it was one of the company's biggest international successes.
"The interest was great and the demand for Eurobonds of Telekom Srbija was seven times higher than the supply and amounted to 5,5 billion dollars. We are extremely satisfied with the impression our company left on the international market, bearing in mind that Telekom is the first company from our region whose bonds are listed on the international stock exchange," he said.
Refinancing of the existing part of the debt
He explained that the collected funds will be used to refinance the existing part of the debt.
The issue of 900 million dollars was concluded with a dollar interest rate of seven percent per year and after hedging the currency risk from dollars to euros, the final interest rate will be about 5,9 percent in euro currency, according to the announcement of Telekom.
It is added that BNP Paribas, Bank of America, Deutsche Bank, Erste Group, Raiffeisen bank, UniCredit and MUFG participated in the process of issuing Telekom Srbija Eurobonds.
"Telekom Srbija issued Eurobonds without any guarantees, which additionally confirms the trust of prestigious international investors in the company's operations both in Serbia and the region and abroad. "S&P Global agency rated the bonds with BB minus and stable outlook, and Fitch agency with B plus with positive outlook," the company pointed out.
"The fact that this is the first time that a company from the region received a credit rating for its bonds from international credit agencies is significant for other companies, both from Serbia and from the region," Telekom's announcement states.
Lučić: Telekom's great success
The CEO of Telekom Srbija, Vladimir Lučić, emphasized that this is the first time that a company based in the Western Balkans has issued bonds on the international financial market and received a credit rating from the most reputable global agencies, which will be significant for other Serbian and regional companies in the future. .
"This is a great success of Telekom. The bonds, which mature in five years, were issued at an interest rate of seven percent in dollars, but after hedging, the interest rate will be further reduced and will amount to below 5,9 percent in euros. We will use the collected $900 million exclusively for smart refinancing of existing obligations, not for any borrowings, which will give us additional resources to continue strong development. The goal is to build a large and successful international company from Telekom Srbija, which has largely cemented its position as a national and regional leader, which is guaranteed for the next ten years," said Lučić.
As particularly important, Vladimir Lučić emphasized the fact that Telekom issued bonds without any guarantees, as it has received support from the world's most reputable financial institutions without asking for guarantees.
"All this shows how much confidence investors have in our company and how much they believe in our business strategy and our business plan for further development," Lučić pointed out.
Source: Beta
