The first corporate bonds in Serbia will be issued soon by Belgrade-based Telefonija, which will do that to collect funds to complete the gas introduction project. Total issue of these bonds will be worth 2m EUR, they will have the maturity period of four years with the interest rate of 7.5%, plus one-year euribor.
When the Securities Commission approves issuing of these bonds, both juristic and physical persons will be able to buy them, but they are primarily meant to attract institutional investors such as insurance companies, pension and investment funds.
The financial adviser for the issuing of these bonds is WM Equity Partners, while the issue agent is Raiffeisen Bank. Vladimir Pavloviæ, the CEO of WM Equity
Partners, explained for magazine Novac that they wanted to offer the companies an alternative to banking loans by issuing completely new securities in the financial market.
- On the other hand, we wanted to offer the investors an instrument that is somewhere between the banking deposit and investment in stocks when it comes to risk and yield. Corporate bonds function in the way that both issuer and investor find the price that is between the banking loan and the interest on deposit - says Pavloviæ.
And while the legal team is finishing the documentation that will be sent to the Securities Commission, capillary demand is being created. Pavloviæ says that they have already made the agreement with three big investors who will be the supporting pillars of this investment, but they also want to gather smaller investors.
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