Romanian IT group raises another EUR 1 mln through bond issue

Romanian IT group Bittnet has completed its third bond issue, raising a total o RON 4.7 million (over EUR 1 million) through a private offer carried out between June 26 and July 4. Most of the money raised will be used for purchasing a 55% stake in ELIAN Solutions and 25% stake in Equatorial Gaming, while the remaining amount will be used as working capital. The group announced the two acquisitions earlier this year. The new bonds have a face value of RON 100, a maturity of 5 years and pay a yearly coupon of 9%. The issue was subscribed by 36 investors, 32 of whom are individuals. Bittnet raised another RON 8.7 million (EUR 1.9 mln) through two bond issues in 2016 and 2017, which it used for expansion, including the acquisition of the former Gecad Net. The group, which is controlled by local entrepreneurs Cristian and Mihai Logofatu, had a turnover of some RON 22 million (EUR 4.74 million) in 2017 and aims to increase its revenues to RON 100 million by 2020. Bittnet is listed on the Bucharest Stock Exchange’s AeRO market and has a market capitalization of RON 50.9 million (EUR 10.9 million). editor@romania-insider.com