“Elektrokrajina” mortgages a building in the center of Banja Luka for 10 million KM

23.07.2024. / 12:11

BANJALUKA – Banja Luka’s “Elektrokrajina” has announced a public call for the second issue of long-term bonds, with which it plans to collect ten million marks for the refinancing of existing debt to suppliers as well as investments in the reconstruction and rehabilitation of the distribution network.

10,000 bonds with a nominal value of 1,000 KM each are being issued with a maturity of five years and an interest rate of 7.8 percent annually.

The principal is paid once upon maturity, and the interest is paid semi-annually in ten annuities.

The beginning of registration and payment of bonds is July 31, and will last until August 30.

As a guarantee for proper payment, “Elektrokrajina” pledged the administration building in the city center near the “Bosna” hotel, as well as three garages, the total estimated value of which is slightly over 15 million marks.

„The issue is considered successful if, within the 30-day period provided for registration and payment, at least 60 percent of the bonds offered in the Single Prospectus are registered and paid for.“, the invitation states.

Otherwise, u prospekt accompanying the public invitation, it is stated that “Elektrokrajina” has “high risk of insolvency, which is of strategic importance because it can call into question the functioning of the company’s operations, as well as the power system in the Republic of Srpska“.

We remind you that this company, which operates as part of “Elektroprivreda Republika Srpska”, issued its first bond issue in 2021 at an interest rate of 3.50 percent.

27.4 million marks were collected, and the last installment is due in 2031.

„The issuer regularly pays annuities for the said issue, in accordance with the annuity plan“, it says in the prospectus.

Last year, “Elektrokrajina” had revenues of 158 million marks, and 2.23 million KM in profit with 1,326 employees.

CAPITAL: D. Tovilović