"Telefonija" to issue corporate bonds in 2010

"Telefonija", of which stocks are present on the Belgrade Stock Exchange since May 2005, plans to issue corporate bonds in the following period and include them in the market of the Stock Exchange. The bonds would be issued with the maturity period of 4 years, in maximum amount of 200m RSD, with variable interest rate of 7.5%+3m Euribor and grace period of one year.

Nominal value of bonds would amount to 10,000 RSD. The payment would be done through quarterly coupons.

The funds collected through issue of these bonds will be used for construction of gas pipeline network in the regions of Subotica and Pančevo and improvement of BeotelNet's operations.

At the presentation for investors, at which the plans and business expectations for year 2010 were presented, company "Telefonija" announced the sale of its majority share in dependent company BeotelNet to the strategic partner.