C&V Water Control, a Romanian producer of water treatment equipment and technology, listed a RON 1.9 million (EUR 430,000) bond issue on Bucharest Stock Exchange - BVB’s AeRO market.

This is the first bond listing on AeRO, a young market for start-ups and small companies, which the BVB launched in February this year.

The bonds have a three-year maturity and a pay 12% yearly interest.

“We pay 10% interest on bank loans, as we have to come up with 200% asset guarantees, so we had to offer a better interests to investors who bought unguaranteed bonds,” said Catalin Valentin Negoita, the company’s general manager and majority shareholder, cited by local Wall-street.ro.

Financial services firm Broker Cluj managed the placement, which was only addressed to its own clients. Some 15 investors bought the bonds.

C&V Water Control had sales of just over EUR 2 million, down by 11% compared to 2013, but the company’s representatives expect the business to more than double this year, to EUR 5 million. The company is currently working on 45 projects worth EUR 6 million.

editor@romania-insider.com