Galeb GTE issues long-term corporate bonds worth RSD 50 million

The nominal value of the bonds is RSD 50m. The bond pays semiannual coupons at the coupon rate of 7.85%, while the principal is paid at the maturity (bullet bond). In spite of being denominated in Dinar, both principal and coupons are linked to Euro, which eliminates the currency risk. The price of the issuance is equal to the nominal value and, consequently, bond equivalent yield equals coupon rate of 7.85%. Effective annual yield to maturity is 8.00%.

The bonds were issued through private placement, and the investor that entered the contract is an Austrian insurance company that also runs the business in Serbia, Wiener Staedtische. The agent of the issue is Sinteza Advisory that drives the business within the broker and dealer company Sinteza Invest Group.

Galeb GTE generated revenues worth EUR 10.4m last year, which was a 20% rise compared with revenues made in 2009. The company enjoyed operating income of EUR 768k, 37% bigger than in 2009. Nevertheless, huge FX losses burdened the company’s bottom line that plunged by 10%, to EUR 341k.

The share of Galeb GTE does not trade frequently on the Belgrade Stock Exchange. At the current price of RSD 350, its market cap amounts to RSD 110.70m (EUR 1.07m).