The General Assembly of Serbia’s NIS (Naftna Industrija Srbije) has approved the issuance of the company’s first-ever corporate bonds, totaling €50 million. The bond issuance will consist of 585,500 long-term bonds, each with a nominal value of approximately €85.5. These bonds may be listed on the secondary market of the Belgrade Stock Exchange, pending approval.
The bonds will be available exclusively to investors—both individuals and entities—who acquire a minimum of €100,000 worth of bonds (or the local currency equivalent). Bondholders will be able to transfer ownership to third parties according to current regulations, but early redemption of the bonds will not be permitted.
With a five-year maturity, the bonds will offer a fixed annual interest rate of 6.5%, with interest payments made quarterly. Bondholders are entitled to receive repayment of the principal at maturity. To ensure the obligations under this issuance are met, NIS has pledged its entire property, in accordance with legal requirements.
The subscription and payment period for the bonds will run from 29 November to 13 December 2024. To deem the issuance successful, at least 30% of the planned volume must be subscribed and paid for by the deadline. If the required minimum is not reached, payments will be refunded to subscribers within three working days after the subscription period ends.
If the issuance is successful, NIS intends to seek approval for the bond prospectus and pursue inclusion of the bonds in the Open Market segment of the Belgrade Stock Exchange’s regulated market.
This bond issuance is part of NIS’s broader financial strategy to raise capital for its operations and investments.