Serbia's National Bank (NBS) said on Friday that the state-owned Telekom Serbia issued its first corporate bonds worth 199,782,594.50 Euro ( 23.5 billion Dinars) following the decision of the company Shareholders Assembly from earlier this month.
The bonds were issued with a maturity of up to five years, at an interest rate of less than four percent.
NBS said Telekom’s bonds were entirely in Dinars and did not carry any foreign exchange risk.
„The demand for bonds was more than enough, which once again indicates the trust of qualified investors in the company’s business,“ it added.
NBS said funds collected by issuing bonds would be used to finance Telecom’s business needs.
However, when the decision was made public, the economists warned that though the move would affect Telekom operations, it „will not plug holes if the company continues doing business in this way. The debt has been increased to about 1.2 billion Euro, and the company is worth not more than 2.4 billion Euro.“
Marinika Tepic , an opposition leader, told reporters in August that Telekom paid businessman Igor Zezelj’s Wireless Media company 38 million Euro in 2018. She said it was a fictitious contract, while lawyer Vladimir Todoric added there was a reason to suspect that Zezelj used that money to buy the Adria Media Group which publishes the pro-regime tabloid Kurir.