Vladimir Lučić, CEO of Telekom Srbija, announced that an extraordinary session of the Shareholders’ Assembly on October 14 will determine whether the company will be permitted to issue corporate euro bonds. This move could position Telekom as the first company from the Western Balkans to enter the European stock market with its international credit rating.
Lučić explained that the funds raised would not be for new borrowing but for smart refinancing of existing debts, enabling Telekom to continue its rapid growth. Although the company initially planned to issue euro bonds in 2022, geopolitical factors, particularly the war in Ukraine, delayed their entry into the international financial market.
He noted that the Shareholders’ Assembly had previously approved euro bond issuance, but a new decision is necessary as the company reassesses its strategy. With interest rates stabilizing and potentially declining, this is viewed as an opportune moment for Telekom to secure an international credit rating again and possibly issue bonds for refinancing.
“We aim to replace older loans with more favorable terms while ensuring our debt remains stable,” Lučić stated. He emphasized that Telekom is currently experiencing strong profits and positive cash flow, which supports their financial strategy.
Lučić anticipates receiving an international credit rating by year-end, and the decision on whether to issue euro bonds will depend on market conditions. He expressed confidence in the growing interest from financial institutions, highlighting Telekom’s evolution into a significant international player.
If successful, this bond issuance would allow Telekom to refinance its existing debt without increasing overall liabilities, marking a milestone for the company as it aims to align with the stricter regulations of the European stock market. Lučić concluded by encouraging other Serbian companies to pursue international credit ratings and consider entering the stock market, reflecting the positive trajectory of the Serbian economy.
