Norofert plans to raise RON 15 mln with 5-year bond at the Bucharest Exchange

Romania's supplier of organic inputs for agriculture, Norofert, announced plans to issue RON 15 mln (EUR 3 mln) of 5-year unsecured, nonconvertible bonds.

The company intends to use the funds for investments in irrigation at the Zimnicea farm and for investments aimed at expanding its activities in external markets where it operates.

Another 5-year Norofert bond with a value of RON 11.5 mln is due in January 2025. Currently, the bond is traded at a yield-to-maturity of 12.4%.

The nominal value of the new bonds will be RON 100 per bond, with a fixed annual nominal coupon rate of 10% over the life of the bonds. Coupon payments will be made semi-annually, and the bonds will have a maturity of 5 years.

The bonds can be redeemed early, but only in full, at the initiative of the company, starting from the second year of the bond's life, in which case the company will pay the bondholders a "clean" redemption price of 101%.

Norofert has a market capitalization of RON 62.6 mln (EUR 12.5 mln).

(Photo source: Norofert)