Telekom Srbija Raises €1.95 Billion to Expand 5G Capabilities

Telekom Srbija has successfully completed a significant corporate bond issuance, raising approximately €1.95 billion. This milestone, achieved through a multi-tranche structure, underscores the company’s commitment to enhancing its 5G infrastructure and strengthening its financial stability.

A Record-Breaking Issuance

The bond issuance, which included senior unsecured notes denominated in both U.S. dollars and euros, targeted global institutional investors across numerous regions. Investor interest in Telekom Srbija exceeded all expectations, with total orders reaching $13.87 billion from around 300 institutional investors. This overwhelming demand has positioned the transaction as one of the most oversubscribed corporate bond issuances in emerging markets over the past two years. Additionally, it now ranks as the largest corporate issuance in Southeast and Central Eastern Europe.

The issuance attracted a diverse range of institutional investors, including pension funds, insurance companies, sovereign investors, and asset managers. Many of these investors were new to the region, allowing Telekom Srbija to expand its access to global funding networks.

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Partnership with Global Financial Institutions

Telekom Srbija's successful bond issuance was bolstered by the involvement of major international banks, including BNP Paribas, Bank of America, Citi, Deutsche Bank, JPMorgan, and UniCredit. These institutions provided significant support by ensuring robust global distribution and attracting a wide variety of investors.

Improved Pricing and Strong Financial Performance

The pricing achieved during this issuance reflected Telekom Srbija’s strengthened credit position and solid financial performance. Investors were encouraged by the company’s strong operational track record, which included €2.3 billion in revenue and an adjusted EBITDA of €1.3 billion in 2025. This bolstered confidence in the company’s ability to execute its long-term strategy.

"Investor demand reflects strong confidence in the company’s long-term strategy and execution track record", said Vladimir Lučić, CEO of Telekom Srbija. He described the issuance as a significant milestone that highlighted global participation in the company’s growth plans.

Strategic Financial Planning

The primary purpose of the funds raised from the bond sale is to refinance Telekom Srbija’s existing debt, enabling the company to secure better terms and optimize its repayment schedules across different currencies. This approach aims to reduce interest costs, manage cash flow more effectively, and ensure long-term financial stability.

The company emphasized that the issuance does not increase its overall indebtedness. Instead, it focuses on optimizing the capital structure to maintain balance sheet discipline while enhancing financial flexibility. This strategy supports Telekom Srbija’s ability to execute long-term operational and infrastructure development plans.

Focus on 5G Expansion

A portion of the funds will be directed toward expanding Telekom Srbija's 5G network capabilities, further cementing its position as a key digital infrastructure provider in Southeast Europe. The company has also received external financing support related to its 5G rollout strategy, including backing from the Export-Import Bank of the United States, which is aimed at advancing national digital infrastructure.

These developments have reinforced investor confidence, with the company’s credit profile supported by ratings from Moody’s, Fitch Ratings, and S&P Global Ratings. A recent upgrade from Fitch further bolstered confidence in Telekom Srbija’s financial standing during the bond issuance process.

Broader Implications for Regional Markets

Telekom Srbija’s achievement has broader implications for the Southeast European capital markets, increasing the region’s visibility among global institutional investors. This success demonstrates the potential for large-scale funding in the region and highlights the growing interest in telecommunications and digital infrastructure as attractive investments.

By securing substantial global participation, Telekom Srbija has not only enhanced its financial flexibility but also strengthened its position for future funding opportunities. The company’s success may inspire further corporate activity in the region, boosting confidence in Southeast Europe as a viable investment destination.

Looking Ahead

With its improved capital structure and expanded access to international funding, Telekom Srbija is well-positioned to advance its 5G infrastructure and pursue long-term growth initiatives. The company’s strengthened financial foundation ensures that it can continue playing a leading role in the region’s digital economy while delivering value to its global investors. As one of the most significant issuers in emerging market telecom, Telekom Srbija’s latest move solidifies its reputation as a reliable and innovative player in the sector.

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