The Oil Industry of Serbia (NIS) successfully raised 1.87 billion dinars through its first corporate bond issue on the domestic market, surpassing the minimum threshold by a narrow margin. A total of 187,161 bonds, valued at 10,000 dinars each, were sold, with the required number for a successful issue set at 175,650 bonds. The bond registration period, which ran from November 29 to December 13, was handled by the Dunav Stockbroker brokerage house.
NIS initially sought to raise 5.85 billion dinars (around 50 million euros) through the bond issuance, which was approved in mid-November. The bonds have a five-year term, are indexed to the euro, and offer a 6.5% annual yield with quarterly coupon payments. The minimum investment amount for potential investors was set at 100,000 euros, targeting primarily domestic pension funds, insurance companies, and banks that do not face restrictions on investing in NIS.
Despite the bond issue’s success, the company is facing uncertainty following reports that the US plans to impose sanctions on NIS starting January 2025, due to its ties to Gazprom. Serbian President Aleksandar Vučić acknowledged this development, although he was not yet familiar with the specifics of the sanctions.
The announcement of potential sanctions led to a decline in NIS shares on the Belgrade Stock Exchange, with the price falling nearly 13% from December 13 to December 16. However, the price later recovered, reaching 722 dinars per share by December 18, compared to 678 dinars on December 16. Despite the fluctuations, NIS remains a significant player on the Serbian stock market, with a market capitalization of 117.73 billion dinars (approximately one billion euros).
NIS has reassured the public that its operations continue without disruption. The Pančevo oil refinery is running smoothly, and the supply to gas stations is regular. The company remains focused on continuing its ongoing investments and maintaining stability in the domestic oil market.
In response to the looming sanctions, President Vučić has proposed the formation of a government team to prepare for potential challenges. He emphasized the importance of securing Serbia’s oil supply, stating, “We cannot allow ourselves to run out of oil.”
