Romanian real estate developer Impact plans to draw EUR 6-15 mln through bond issue

Impact Developer & Contractor (IMP), one of the biggest Romanian developers of residential projects, will launch a bond offer in euro and aims to draw between EUR 6 million and EUR 15 million from investors on the Bucharest Stock Exchange (BVB).

The offer will be addressed to qualified investors and a limited number of natural and legal persons (under 150).

The bonds will have a nominal value of EUR 500, a 6-year maturity, and will pay a yearly coupon of 5.9% to 6.4%. The exact coupon will be determined based on the subscription orders received from investors.

Local brokerage firm Tradeville will manage the offer.

This is Impact’s second bond issue in euro after the company drew EUR 12.5 mln with a similar offer in 2017.

The company will use the new funds to continue developing its projects in Bucharest (Greenfield and Luxuria Residence) and Constanta (Boreal) and start a new project in Iasi, where it recently purchased a 1.9-hectare plot in the Copou area.

Impact Developer & Contractor recorded revenues of RON 135 mln (EUR 27.8 mln) from home sales in the first nine months of 2020, up by 35% compared to the similar period of 2019. The company sold 258 apartments in its residential projects in Bucharest (Greenfield and Luxuria Residence), up by 23% year-on-year.

However, the operating and financial costs also increased, and the net profit in the first nine months went down by 28% compared to the same period of last year, to RON 13.28 mln (EUR 2.74 mln).

Impact’s shares have had a stable evolution in the last 12 months, and the company’s market capitalization is currently RON 371 mln (EUR 76 mln).

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