Serbian engineering group Kodar Energomontaža plans to raise RSD5.86 billion, or approximately €50 million, through a five-year green bond to finance its Jasikovo wind farm and Brebex solar project. The issue is scheduled to enter primary trading on August 24, 2026, marking one of the largest domestic corporate green-bond offerings attempted on the Belgrade Stock Exchange. Kodar will issue 586,000 bonds, each with a nominal value of RSD10,000, carrying a fixed annual coupon of 7%.
Interest will be paid annually, while the full principal will be repaid at maturity after five years. The securities are subsequently intended for admission to the Open Market segment of the Belgrade Stock Exchange. The offering is open to Serbian and foreign legal entities as well as adult individual investors. The minimum subscription is 100 bonds, or RSD1 million, while the issue will be deemed successful if at least 20% of the bonds are subscribed.
Bond Terms and Credit Profile
At the full issue size, Kodar would have annual coupon obligations of approximately RSD410.2 million. Total coupon payments over the five-year term would amount to around RSD2.05 billion, followed by repayment of the RSD5.86 billion principal at maturity. The bonds are unsecured and structured with a bullet repayment rather than scheduled amortisation. The structure therefore leaves the entire principal obligation payable at the end of the five-year period.
The 7% coupon is being offered against a Serbian monetary environment in which the National Bank of Serbia maintained its key policy rate at 5.75% in August, while annual consumer-price inflation stood at 1.9% in July 2026. A five-year Serbian dinar government bond auction in June produced a yield of 5.00%, putting the latest comparable sovereign borrowing cost approximately 200 basis points below Kodar’s coupon.
Kodar received a B/Stable issuer rating from Scope Ratings in February 2026, while the planned senior unsecured bond received a preliminary (P)B rating. Scope identified the company’s relatively small scale, customer concentration and expected leverage increase as constraints, while also highlighting refinancing risk related to the bond’s bullet repayment.
Comparison With Serbia’s Previous Green Bond
The planned offering follows Elixir Group’s RSD4.1 billion, approximately €35 million, five-year green bond, issued in April 2025 with a 6% annual coupon. Elixir’s transaction was the first primary trading of a financial instrument on Serbia’s organised market in more than a decade, and the entire issue was placed. Kodar’s proposed issue is approximately 43% larger in nominal euro terms than the Elixir transaction and carries a coupon one percentage point higher.
The Serbian corporate bond market remains characterised by limited secondary-market trading. Belgrade Stock Exchange records for Elixir’s bond have included numerous sessions with zero turnover, indicating limited trading activity after the initial placement.
Green Bond Proceeds for Jasikovo and Brebex
Kodar has committed the bond proceeds exclusively to eligible renewable-energy investments under its green financing framework. The funds are intended for Jasikovo, a wind project with capacity of up to 70MW, and Brebex, a solar project with capacity of up to 300MW and accompanying battery storage. Both project companies are wholly owned by Kodar. The bond proceeds will be transferred to the project companies through subordinated shareholder loans and/or additional equity contributions, with the final structure depending on the requirements of banks providing project financing.
The proceeds are designated for new investment rather than refinancing existing expenditure. Kodar estimates total investment requirements of approximately €133 million for Jasikovo and €262 million for Brebex, putting the combined expected capital expenditure at around €395 million. A fully subscribed €50 million bond would account for approximately 12.7% of that combined investment requirement. The remaining financing is expected to come from sponsor resources and long-term bank project finance. Kodar is already in advanced discussions with commercial banks.
Development Investment Has Reached RSD1.66 Billion
Investment in the two renewable projects had already reached RSD734.5 million by the end of 2025, including approximately RSD351.9 million for Jasikovo and RSD382.6 million for Brebex. By March 31, 2026, cumulative development investment had increased to approximately RSD1.66 billion. Jasikovo accounted for around RSD1.18 billion, while Brebex represented approximately RSD480 million.
Jasikovo is the more advanced of the two projects. Located across the municipalities of Majdanpek and Žagubica, it was selected under Serbia’s renewable-energy auction programme. In March 2026, turbine manufacturer Nordex confirmed an order for 11 N175/6.X turbines, each configurable at up to 7MW, together with a long-term service agreement. Nordex expects installation of the first turbine to begin in April 2027, with initial electricity generation targeted for July 2027. Jasikovo is expected to produce more than 270GWh of electricity annually.
Owners Engineer and Supervision role is delegated to local company Clarion Owners Engineer, who is also managing OE role on the wind park Crni Vrh.
Brebex Designed as 300MW Solar Project
Brebex is the larger of the two projects by investment value. Located near Dimitrovgrad, it is planned with up to 300MW of solar capacity, battery storage and associated grid infrastructure. Kodar estimates annual electricity production from Brebex at approximately 475GWh and total investment at around €262 million. The projects are being developed within Serbia’s renewable-energy support framework. The country’s second renewable-energy auction concluded in 2025 after receiving 41 proposals, with support awarded to wind and solar projects under a 15-year contract-for-difference framework.
Kodar Expands Beyond Engineering and Construction
Kodar’s existing operations include electricity infrastructure, telecommunications, EPC services and related engineering activities in Serbia, the wider region and European markets, including the Netherlands. The company dates its history to 1958. Its renewable-energy investments represent a move into ownership and development of power-generation assets alongside its established engineering and construction activities. According to the bond prospectus, Kodar generated standalone EBITDA of approximately RSD1.19 billion in 2025, compared with around RSD1.56 billion in 2024.
Standalone net financial debt was approximately RSD997 million, while the company’s current ratio stood at around 1.08 and interest coverage at 5.96 times. The 2025 figures in the prospectus were unaudited. At the planned full issue size, the annual RSD410.2 million coupon would represent a substantial financing obligation relative to Kodar’s 2025 standalone EBITDA.
Green Framework Receives Dark Green Assessment
S&P Global Ratings’ sustainable-finance team assessed Kodar’s green financing framework as “Dark Green”. The framework directs proceeds toward new wind, solar and associated storage investments and is aligned with the International Capital Market Association’s Green Bond Principles. The environmental assessment of the framework is separate from Kodar’s credit rating. Scope Ratings assigned the issuer a B/Stable rating and a preliminary (P)B rating to the planned senior unsecured bond.
The transaction will therefore provide financing for the development of Jasikovo and Brebex, while Kodar’s ability to meet the bond’s obligations will remain linked to its broader corporate financial position, existing operations and the financing requirements associated with the two renewable projects.
