Romania’s investment funds formed by mass privatisation extend EUR 100 mln to developer Prime Kapital

In a first move of this kind on the Romanian capital market, the five investment funds resulted from the mass privatisation scheme in the 90’s – Lion Capital, Evergent Investments, Transilvania Investments, Longshield Investment Group, and Infinity Capital (directly or through subsidiaries) – jointly financed, in full, the EUR 100 million bond issue of real estate developer Prime Kapital. The issuer is PK Development Holding.

The five fund managers participated in the bond issue in different proportions, with the bonds to be distributed according to contractual agreements.

According to reports published on Bucharest Exchange, where the investment funds are listed, Longshield Investment Group participated with EUR 15 million, Lion Capital with EUR 55 million, Electromagnetica (on behalf of Infinity Capital Investments) with EUR 17 million, and Transilvania Investments Alliance and Evergent Investments, which did not report, should have come up with the difference of EUR 13 million, Economedia.ro reported.

The bond repayment period is a maximum of 36 months from the date of bond allocation, and they will be fully redeemed on the final maturity date, with the possibility of early repayment.

The bonds are secured by a first-ranking real estate mortgage on the property belonging to Mall Moldova and on certain properties (land and buildings adjacent to it) owned by Ermes Holding.

The bonds issued by PK Development Holding SA are not offered publicly, and their admission to trading on a regulated market or other trading venue will not be requested.

(Photo source: Romolo Tavani/Dreamstime.com)