Serbia’s capital market is entering a more active phase, with several companies preparing corporate bond issues before the end of 2026 and private businesses considering initial public offerings in 2027. Executive director of the Belgrade Stock Exchange, said several Serbian companies were preparing bond offerings, while private businesses were working toward potential share listings next year. He also said at least one state-controlled company could eventually join the IPO pipeline, although neither an issuer nor a timetable has been confirmed.
Corporate bonds gain traction
The developments come as Serbia seeks to broaden corporate financing beyond its traditionally bank-centred system. Serbian companies have historically relied on bilateral loans and bank syndicates to finance expansion, while the Belgrade Stock Exchange has had a limited role in new capital raising.
A €27.7 million World Bank-backed capital-market programme is supporting corporate bond issuance, regulatory development and improvements to market infrastructure. Amendments to Serbia’s capital-market legislation also entered into force in 2026.
Early transactions are providing an initial indication of investor appetite. Engineering and energy contractor Kodar Energomontaža raised approximately €15.4 million through a green bond issue in August. The company had initially targeted as much as €50 million, meaning about 31% of the maximum planned issue was subscribed.
IPO pipeline could expand equity financing
The potential return of IPOs would represent a further development for Serbia’s capital market, which has lacked a sustained flow of new equity listings for years. A successful private-sector IPO would provide domestic investment funds, institutional investors and households with a direct route into Serbian corporate equity. A listing by a larger state-controlled company could have a broader effect by introducing a liquid benchmark security and attracting investors to the exchange. The characteristics of the first issuers will be important. A small free float or weak corporate governance could limit the impact, while a sizeable and profitable company with transparent reporting and meaningful public ownership could provide a stronger market benchmark.
Investment funds hold potential domestic demand
Serbia’s investment funds now manage approximately €2.4 billion, but almost 80% of those assets remain concentrated in money-market products. The figures indicate that professionally managed domestic savings are growing while a relatively small share is directed toward corporate bonds and equities.
If 10% of current investment-fund assets were eventually allocated to corporate securities, the potential demand would amount to approximately €240 million. That figure would be comparable with the prospective corporate bond pipeline discussed by market officials.
Market liquidity remains a key issue
The expansion of securities issuance would not displace Serbia’s banking sector. The banking system remains liquid and profitable, and bank lending is expected to continue dominating corporate financing. The objective is instead to give companies with large investment programmes access to a broader combination of bank loans, bonds and equity financing. The development of secondary-market liquidity remains another challenge. Issuing securities is different from creating a market where investors can regularly buy and sell them.
Bonds placed with a limited number of institutions and rarely traded would leave the market shallow even if issuance volumes increased. Equity listings face similar requirements, including credible disclosure, sufficient free float and investor confidence in the ability to exit positions without substantial price movements. The quality of the initial transactions will therefore influence the development of Serbia’s capital market as companies move toward additional bond offerings and potential IPOs.
