Romanian snack producer raises another RON 4 mln with bond issue

Romanian snacks producer Golden Foods, which produces and sells nuts and seeds under the Elmas brand, raised RON 4 million (EUR 825,000) from the local capital market with a new bond issue.

The bonds have a maturity of three years and offer a yearly coupon of 9%, payable quarterly, Profit.ro reported. They will be listed on the Bucharest Stock Exchange (BVB).

The company raised another RON 4.7 mln (close to EUR 1 mln) in a similar operation carried out at the end of 2019 when it needed funds for expanding the product range. The new bonds are not guaranteed, unlike those issued in 2019 that have the Elmas brand as a guarantee.

The company has pledged not to distribute dividends to its shareholders until it repurchases the new bonds.

Golden Foods has two Cyprus-registered shareholders: GF Holdings Limited (55.8%) and Golden Brands Limited (44.2%). The company reported in 2019 a turnover of RON 53.4 million (EUR 11.5 mln), up 15.5% compared to 2018, and a net profit of RON 394,300 (EUR 85,000), down 69%.

The company had 109 employees at the end of 2019.

(Photo source: Wynnyk/Dreamstime.com)