Telefonija issued first long-term corporate bonds in Serbian market

- Telefonija has issued 50 million dinars (about EUR 500,000) worth of long-term corporate bonds, the first ever in Serbian capital market, with the maturity date four years after their issue - people in that Serbian company announced yesterday (June 29, 2010).

Total of 5,000 bonds have been issued, each of which is nominally worth RSD 10,000.

Milko Štimac, the Chairman of the Securities Commission, stated that Telefonija's move was bold because it was the first issue of long-term corporate bonds in Serbian market.

He said that he expected other companies to follow the example of Telefonija and make the issue of bonds more than just an alternative source of finance.

Telefonija CEO Predrag Sofrenić said that the funds collected through the issue of bonds would be spent on development and construction of gas pipeline network and improvement of the capacities of Internet service.

Telefonija announced that the bonds were issued for insurance company Wiener Stadtische and that it planned new issues for other insurance companies.

The bonds are with interest rate of 7.5% plus 12-month Euribor.