A novel cross-border, dual-currency syndicated financing structure has been used to lower currency risk while addressing Serbian banking restrictions.
Telekom Srbija secured a €470 million, three-year term loan from a syndicate of 19 international and domestic banks on January 9. Of this, €320 million was to pay for a share buyback, and €150 million was for refinancing purposes.
The financing contained three tranches: a straight euro-denominated refinancing tranche and two acquisition financing tranches, one in Serbian dinar and one in euro. The transaction was publicly denominated in euro and was oversubscribed.
Mark Segall of CMS Cameron McKenna in Prague, who acted for the syndicate leader Unicredit, said to that to his knowledge...