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Bonds of online retailer Vivre plunge by one third after disappointing FY2021 reports

The prices of the bonds issued by Romanian online retailer Vivre, with generous coupons attached of 5.25% (for the issue maturing 2025) and 5.5% (for the issue maturing 2026), kept plunging on May 3.

The price of VIV25E bonds closed at 69.4% of the face value while that of VIV26E at 66.5%. These are the lowest prices for entrepreneurial financing in the history of BVB.

Those who bought Vivre bonds on May 3 can register a yield of 21% and 16% in euros, respectively, Ziarul Financiar daily said. What the daily fails to mention is that the brave buyers of May 3 (there were not many) may lose 100% of their money as well.

The investors eventually learned what a non-guaranteed bond means, Bursa daily commented in a column. The first question that investors should have asked themselves when buying Vivre bonds (and other corporate bonds promising similarly high returns) is why the bond issuers willing to pay 8-9% for local currency bonds and 5-8% for EUR denominated bonds did not get better terms from banks? 

andrei@romania-insider.com

(Photo source: Dreamstime.com)

Normal

 

The Capital Markets News section is powered by the Bucharest Stock Exchange 

 

BSE

 

 

Bonds of online retailer Vivre plunge by one third after disappointing FY2021 reports

The prices of the bonds issued by Romanian online retailer Vivre, with generous coupons attached of 5.25% (for the issue maturing 2025) and 5.5% (for the issue maturing 2026), kept plunging on May 3.

The price of VIV25E bonds closed at 69.4% of the face value while that of VIV26E at 66.5%. These are the lowest prices for entrepreneurial financing in the history of BVB.

Those who bought Vivre bonds on May 3 can register a yield of 21% and 16% in euros, respectively, Ziarul Financiar daily said. What the daily fails to mention is that the brave buyers of May 3 (there were not many) may lose 100% of their money as well.

The investors eventually learned what a non-guaranteed bond means, Bursa daily commented in a column. The first question that investors should have asked themselves when buying Vivre bonds (and other corporate bonds promising similarly high returns) is why the bond issuers willing to pay 8-9% for local currency bonds and 5-8% for EUR denominated bonds did not get better terms from banks? 

andrei@romania-insider.com

(Photo source: Dreamstime.com)

Normal
 

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