One of the biggest domestic companies in the field of telecommunication projections and maintenance, Galeb GTE, has issued five-year corporate bonds denominated in domestic currency, Dinar.
The nominal value of the bonds is
RSD 50m. The bond pays semiannual coupons at the coupon rate of 7.85%,
while the principal is paid at the maturity (bullet bond). In spite of
being denominated in Dinar, both principal and coupons are linked to Euro, which eliminates the currency risk. The price of the issuance is
equal to the nominal value and, consequently, bond equivalent yield equals
coupon rate of 7.85%. Effective annual yield to maturity is 8.00%.
The bonds were issued through private
placement, and the investor that entered the contract is an Austrian
insurance company that also runs the business in Serbia, Wiener
Staedtische. The agent of the issue is Sinteza Advisory that drives
the business within the broker and dealer company Sinteza Invest Group.
Galeb GTE generated revenues worth EUR
10.4m last year, which was a 20% rise compared with revenues made in
2009. The company enjoyed operating income of EUR 768k, 37% bigger than in 2009. Nevertheless, huge FX losses burdened the
company’s bottom line that plunged by 10%, to EUR 341k.
The share of Galeb GTE does not trade
frequently on the Belgrade Stock Exchange. At the current price of RSD
350, its market cap amounts to RSD 110.70m (EUR 1.07m).
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