Romanian real estate developer Forty Management launches EUR 5 mln bond at Bucharest Exchange

Romanian real estate developer of premium, mixed-use, urban reconversion buildings under Central District brand Forty Management announced the launch of the first issue of guaranteed bonds for a maximum amount of EUR 5 million, with a maturity of 4 years and a coupon payable semi-annually.

The money will be used to finance the expansion of its Lagoon Park concept across Europe. The private placement is coordinated by Goldring broker.

Forty said it would further explore options for capital markets financing ahead of listing its shares.

"Since this is our first bond issue, we have chosen a cautious approach, with a relatively small amount, but if it is well received by the market, we will supplement future issues as our projects evolve," said Florin Suicescu, COO of Forty Management.

The decision to launch the first bond issue comes in response to the company's international projects moving forward, including the Lagoon City developments in Seville and Budapest, as well as the investment in Lagoon Park Bucharest after opening to the public this year.

Lagoon Park/Public Access Lagoon (PAL) projects are also due to be implemented in other major European cities in the coming years, including Rome, Toulouse, Milan, Prague, and Warsaw.

With these concepts, Forty Management will implement in these cities the already acquired licenses of its patented Crystal Lagoons technology, which enables the construction and maintenance of cost and energy-efficient artificial turquoise water lagoons of unlimited size.

(Photo source: the company)