Romanian real estate developer Impact lists a bond issue of 6.6 million Euro at BVB

Impact Developer & Contractor, one of the first companies listed on the Bucharest Stock Exchange (BVB), and the only real estate developer listed on BVB’s Main Market, listed on BVB a bond issue worth almost 6.6 million Euro.

“This round of financing carried out by Impact Developer & Contractor is a further proof that the listing provides listed companies access to an inexhaustible source of capital, which can be accessed at any time by already listed companies. We are glad to see Impact Developer & Contractor is very active not only on the real estate market, but also on the capital market, where it attracted financing through this bond issue and, at the same time, together with BRK Financial Group founded the first Romanian REIT that they recently listed at BVB. The outlook for 2021 is optimistic, if we look at the fact that from the public information alone more than 20 companies are in various stages of preparing to come to BVB, but also looking at the dividends announced by listed companies, which are more attractive compared to interest rates on bank deposits”, stated Radu Hanga, Bucharest Stock Exchange Chairman of the Board.

“The capital market continues to be the central axis of our company’s national expansion strategy, due to the conditions of security, certainty and full transparency. The decision to attract financing through this bond issue to increase the liquidity for the new large-scale projects we are developing in the country’s major cities has once again proved to be a very good one. As always, the entire process of issuing and listing Impact bonds on BVB was very easy and efficient for both investors and Impact Developer & Contractor, as Issuer. The success of this round of financing reconfirms our company’s long history of innovation and trust and motivates us to prepare for a new bond issue for large-scale projects that we will launch in 2021 and 2022”, said Sorin Apostol, Impact Developer & Contractor CEO.

The issue comprises 13,163 euro-denominated bonds, with a 6-yrs maturity and a face value of EUR 500/ bond. The bonds were issued at the end of a private placement carried out in December 2020 and assisted by SSIF TradeVille and have a fixed interest rate of 6.40% p.a..

“We see as an excellent sign that the stock market revolution started on the AeRO market is starting to gain more and more followers among the companies listed the Regulated Market. Impact is a real estate company that has managed to get past the time of 2009 and successfully navigate the changing environment of the last decade. Along with other issuers, both on the Main Market and on the alternative system, it proves that the stock market is starting to enter its normal role as an important source of financing the real economy. There is still a long way to go to balance the share of other sources of financing in the Romanian economy, but we can say that the premises are getting better”, stated Ovidiu-George Dumitrescu, CFA, TradeVille Deputy CEO.

“In the last almost two and a half years we have seen a growing interest in attracting financing through the capital market. Only in the first quarter of this year, we had 11 listings at BVB, four of which are shares and seven are corporate bonds and government bonds, which reinforces the fact that the capital market is a viable financing channel for companies wishing to develop. The four recently listed companies have a cumulative capitalization of 511 million lei and bond issues a cumulative value of 1.4 billion lei. If we add the listings from 2019 and 2020, we see that the eight listed companies have a cumulative capitalization of 925 million lei and the 42 bond issues have a value of 11.6 billion lei. The figures show that capital market investors have money to invest. Other sources of financing can be represented by the money that Romanians keep in deposits, but also by private pension funds and investment funds. We see that the population’s deposits continue to grow, reaching over 262.4 billion lei, and part of this money will start looking for a higher return than that of deposits”, stated Adrian Tanase, BVB CEO.

Impact Developer & Contractor recorded in 2020 revenues from the sale of real estate worth EUR 42.7mn, up by 29.4% compared to 2019, which from this point of view is the best result in the last decade of the developer. In a pandemic year, the company traded a total of 369 apartments (31,191 sqm built area), of which 205 in the Greenfield Baneasa residential complex and 164 in the Luxuria Residence project. In 2020, the company continued its residential development activities at a steady pace, despite the difficulties caused by the pandemic. In this sense, Impact implemented the national expansion strategy, starting in Constanta the construction of the premium residential project Boreal Plus and acquiring a land in Iasi for the development of a sustainable project, which would improve the living standard of Romanians.