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Thursday, April 22, 2021 
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The Romanian real estate developer Impact Developer Contractor lists a bond issue of EUR 6.6mn at BVB

3/26/2021

  • Bonds worth EUR 6.6mn issued in December 2020 by the real estate developer Impact Developer & Contractor debuted at BVB, on the Regulated Market, under the ticker IMP26E.
  • Radu Hanga, BVB Chairman of the Board:
    • ”This round of financing carried out by Impact Developer & Contractor is a further proof that the listing provides companies access to an inexhaustible source of capital, which can be accessed at any time by already listed companies. We are glad to see Impact Developer & Contractor is very active not only on the real estate market, but also on the capital market, where it attracted financing through this bond issue and, at the same time, together with BRK Financial Group founded the first Romanian REIT that they recently listed at BVB”.
  • Sorin Apostol, Impact Developer & Contractor CEO:
    • ”The capital market continues to be the central axis of our company's national expansion strategy, due to the conditions of security, certainty and full transparency. The success of this round of financing reconfirms our company's long history of innovation and trust and motivates us to prepare for a new bond issue for large-scale projects that we will launch in 2021 and 2022”.
  • Ovidiu Dumitrescu, TradeVille, Deputy CEO:
    • ”Impact is a real estate company that has managed to get past the time of 2009 and successfully navigate the changing environment of the last decade. Along with other issuers, both on the Main Market and on the alternative system, it proves that the stock market is starting to enter its normal role as an important source of financing the real economy. There is still a long way to go to balance the share of other sources of financing in the Romanian economy, but we can say that the premises are getting better”.
  • Adrian Tanase, BVB CEO:
    • ”In the last almost two and a half years we have seen a growing interest in attracting financing through the capital market. Only in the first quarter of this year, we had 11 listings at BVB, four of which are shares and seven are corporate bonds and government bonds, which reinforces the fact that the capital market is a viable financing channel for companies wishing to develop. The four recently listed companies have a cumulative capitalization of 511 million lei, and the bond issues a cumulative value of 1.4 billion lei. The numbers show that capital market investors have the money to invest”.

 

Impact Developer & Contractor (IMP), one of the first companies listed on the Bucharest Stock Exchange (BVB), and the only real estate developer listed on BVB’s Main Market, listed on BVB a bond issue worth almost EUR 6.6mn.

"This round of financing carried out by Impact Developer & Contractor is a further proof that the listing provides listed companies access to an inexhaustible source of capital, which can be accessed at any time by already listed companies. We are glad to see Impact Developer & Contractor is very active not only on the real estate market, but also on the capital market, where it attracted financing through this bond issue and, at the same time, together with BRK Financial Group founded the first Romanian REIT that they recently listed at BVB. The outlook for 2021 is optimistic, if we look at the fact that from the public information alone more than 20 companies are in various stages of preparing to come to BVB, but also looking at the dividends announced by listed companies, which are more attractive compared to interest rates on bank deposits", stated Radu Hanga, Bucharest Stock Exchange Chairman of the Board.

"The capital market continues to be the central axis of our company's national expansion strategy, due to the conditions of security, certainty and full transparency. The decision to attract financing through this bond issue to increase the liquidity for the new large-scale projects we are developing in the country's major cities has once again proved to be a very good one. As always, the entire process of issuing and listing Impact bonds on BVB was very easy and efficient for both investors and Impact Developer & Contractor, as Issuer. The success of this round of financing reconfirms our company's long history of innovation and trust and motivates us to prepare for a new bond issue for large-scale projects that we will launch in 2021 and 2022", said Sorin Apostol, Impact Developer & Contractor CEO.

The issue comprises 13,163 euro-denominated bonds, with a 6-yrs maturity and a face value of EUR 500/ bond. The bonds were issued at the end of a private placement carried out in December 2020 and assisted by SSIF TradeVille and have a fixed interest rate of 6.40% p.a..

“We see as an excellent sign that the stock market revolution started on the AeRO market is starting to gain more and more followers among the companies listed the Regulated Market. Impact is a real estate company that has managed to get past the time of 2009 and successfully navigate the changing environment of the last decade. Along with other issuers, both on the Main Market and on the alternative system, it proves that the stock market is starting to enter its normal role as an important source of financing the real economy. There is still a long way to go to balance the share of other sources of financing in the Romanian economy, but we can say that the premises are getting better”, stated Ovidiu-George Dumitrescu, CFA, TradeVille Deputy CEO.

“In the last almost two and a half years we have seen a growing interest in attracting financing through the capital market. Only in the first quarter of this year, we had 11 listings at BVB, four of which are shares and seven are corporate bonds and government bonds, which reinforces the fact that the capital market is a viable financing channel for companies wishing to develop. The four recently listed companies have a cumulative capitalization of 511 million lei and bond issues a cumulative value of 1.4 billion lei. If we add the listings from 2019 and 2020, we see that the eight listed companies have a cumulative capitalization of 925 million lei and the 42 bond issues have a value of 11.6 billion lei. The figures show that capital market investors have money to invest. Other sources of financing can be represented by the money that Romanians keep in deposits, but also by private pension funds and investment funds. We see that the population's deposits continue to grow, reaching over 262.4 billion lei, and part of this money will start looking for a higher return than that of deposits”, stated Adrian Tanase, BVB CEO.

Impact Developer & Contractor recorded in 2020 revenues from the sale of real estate worth EUR 42.7mn, up by 29.4% compared to 2019, which from this point of view is the best result in the last decade of the developer. In a pandemic year, the company traded a total of 369 apartments (31,191 sqm built area), of which 205 in the Greenfield Baneasa residential complex and 164 in the Luxuria Residence project. In 2020, the company continued its residential development activities at a steady pace, despite the difficulties caused by the pandemic. In this sense, Impact implemented the national expansion strategy, starting in Constanta the construction of the premium residential project Boreal Plus and acquiring a land in Iasi for the development of a sustainable project, which would improve the living standard of Romanians.

 

 

About Impact Developer & Contractor
With 30 years of experience on the market, Impact Developer & Contractor is the first real estate developer after the communism regime, company established with 100% Romanian capital. In 1996, the company was listed at Bucharest Stock Exchange, Impact being the first representative of the real estate and construction segment listed on the BVB. In 2006, the company’s shares were upgraded to BVB’s first Tier and in 2015 to Premium Tier.
The mission of Impact Developer & Contractor is to develop sustainable projects, at modern standards, both in Bucharest and in the big cities of the country. Among the developer's reference projects are Greenfield Baneasa and Luxuria Residence, a luxury residential complex with BREEAM Excellent Certification. As part of the national expansion strategy, Impact started the construction of a premium residential project in Constanta, Boreal Plus, a mixed project consisting of 18 villas and 673 apartments, built on an area of 43,000 square meters, which will be completed in 2024. Also, Impact continues the expansion at regional level and starts Greenfield Copou, in Iasi. The works will start in 2021, with a completion deadline in 2024, being built in three phases. The project includes a total of 1,100 apartments, built on an area of 48,685 square meters.

 

About TradeVille
TradeVille is a broker with over 26 years of experience on the Romanian capital market and offers retail clients easy and fast access to Bucharest Stock Exchange and major international stock exchanges. In 2020, TradeVille carried out over 50% of corporate equity and bond placements with a 100% success rate for companies in various industries. In 2021, TradeVille received the most trophies from the Bucharest Stock Exchange at the stock market performance awards ceremony: The 2020 Participant in the retail segment and the Intermediary of entrepreneurial companies at BVB in 2020 in the bond segment.