State-controlled Telekom Srbija said on May 12 it has raised about €1.95bn through a multi-tranche issuance of senior unsecured bonds denominated in US dollars and euros, marking one of the largest corporate debt transactions in emerging Europe.

The company said the offering drew strong demand of $13.87bn from around 300 international institutional investors, including pension funds, insurers and asset managers, the highest for any corporate bond issue to date across Southeast, Central and Eastern Europe.

The transaction, Telekom Srbija’s second international Eurobond issue, was arranged by a consortium including BNP Paribas, Bank of America, Deutsche Bank, JPMorgan, OTP Bank, Raiffeisen Bank, UniCredit and Eurobank.

Chief executive Vladimir Lučić said the deal marked a “turning point” for both the company and regional capital markets, highlighting the scale of investor interest.

“Demand of $13.87bn from approximately 300 global institutional investors is a strong confirmation of our long-term strategy, operational results and financial discipline,” Lučić said, according to state news agency Tanjug.

He added that Telekom Srbija is increasingly being recognised as an international issuer with a path toward an investment-grade credit rating.

The company said pricing across all tranches improved compared with its inaugural Eurobond issue, supported by stronger financial performance and an upgraded credit profile.

Telekom Srbija reported revenues of €2.3bn and adjusted EBITDA of €1.3bn in 2025, underpinning investor appetite for the deal.

Proceeds will be used to refinance existing debt on more favourable terms, extend maturities across currencies and optimise the capital structure without increasing overall indebtedness, the company said.

The issue also broadened the firm’s investor base, with some institutions investing in the region for the first time, and is expected to boost visibility of Serbian and regional capital markets among global investors.

The company added that its credit profile is supported by ratings from Moody’s, Fitch Ratings and S&P Global Ratings, noting that a recent upgrade by Fitch ahead of the transaction helped strengthen investor confidence.

Telekom Srbija also cited the recent announcement of financing support from the Export-Import Bank of the United States for the rollout of its 5G network as an additional factor underpinning demand.