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Telekom Srbija Raises ?1.95 Billion Through Landmark Eurobond Transaction, Attracting Record Demand from Global Investors

BY Business Wire | CORPORATE | 06:09 AM EDT

The largest corporate bond issuance from the region attracted nearly USD 14 billion in demand from around 300 global institutional investors, marking a milestone moment for Southeast European capital markets.

BELGRADE, Serbia--(BUSINESS WIRE)-- Telekom Srbija has successfully completed its second international corporate bond issuance, raising approximately ?1.95 billion through a multi-tranche offering of senior unsecured notes denominated in U.S. dollars and euros.

The transaction generated exceptional investor interest, attracting total demand of USD 13.87 billion from approximately 300 leading international institutional investors, making it the largest corporate bond issuance ever executed in the Southeast / Central and Eastern Europe region, as well as one of the most heavily oversubscribed corporate transactions across emerging markets globally during 2025 and 2026.

The issuance attracted participation from many of the world?s most prominent pension funds, insurance companies, sovereign-affiliated investors, and global asset managers, with several top-tier international institutions investing in the region for the first time through Telekom Srbija?s offering.

The transaction was led by a consortium of leading international financial institutions, including BNP Paribas, Bank of America, Citi, Deutsche Bank, Eurobank, JPMorgan, OTP Bank, Raiffeisen Bank International, and UniCredit.

?Telekom Srbija?s transaction represents a landmark moment not only for the Company, but also for the broader regional capital market,? said Vladimir Lu?i?, Chief Executive Officer of Telekom Srbija.

?Reaching USD 13.87 billion in demand, with participation from approximately 300 global institutional investors ? including some of the world?s most prominent pension and insurance funds ? represents a strong endorsement of our long-term strategy, operational performance, and financial discipline. Telekom Srbija is increasingly being recognized not merely as a regional story, but as a credible international issuer with strong growth fundamentals and a clear path toward achieving an investment-grade credit rating.?

Pricing achieved across all tranches represented a significant improvement compared to the Company?s inaugural eurobond issuance, supported by Telekom Srbija?s strengthened credit profile, stable financial performance, and the high quality of investor demand.

The issuance follows a period of record operational and financial performance for Telekom Srbija. During 2025, the Company generated revenues of ?2.3 billion and adjusted EBITDA of ?1.3 billion, further solidifying its position as one of the leading telecommunications and digital infrastructure operators in Southeast Europe.

The transaction will enable Telekom Srbija to refinance existing debt under more favorable terms, extend its debt maturity profile across multiple currencies and maturities, and further optimize its capital structure without increasing overall indebtedness.

Investor participation in the offering positions Telekom Srbija among the more established emerging market issuers and significantly broadens the international investor base for future corporate issuances from the region.

The successful transaction is also expected to further increase the visibility of Serbian and regional capital markets among global institutional investors, while strengthening international confidence in Southeast Europe as a growing investment destination.

Telekom Srbija?s credit profile is supported by ratings from Moody?s, Fitch Ratings, and S&P Global Ratings. The Company also strategically aligned the timing of its latest Fitch rating upgrade immediately prior to the execution of the transaction, further reinforcing investor confidence and market positioning during a period of heightened global market uncertainty. This was further supported by the recently secured financing backed by the Export-Import Bank of the United States (EXIM Bank), intended to support the implementation of Telekom Srbija?s national 5G network development strategy.

Source: Telekom Srbija

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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