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The bonds of the real estate leasing and sub-lease company Ready Office Rent debut on Bucharest Stock Exchange Multilateral Trading System

10/13/2020

The real estate leasing and sub-lease company Ready Office Rent took the first step on the Bucharest Stock Exchange (BVB), where it listed, on Tuesday, October 13th, a bond issue worth almost RON 5.2mn, on the Multilateral Trading System (MTS). This is the first corporate bonds issue listed on Bucharest Stock Exchange after the Romanian capital market upgrade to the Secondary Emerging Market status by the global index provider FTSE Russell.

“If we look at the sectors from which the companies came to BVB in the last two years, we can say that the Stock Exchange is for any company, regardless of the field of activity, size and shareholding structure. All companies that came to the capital market to attract financing and convinced the investors with their development plans have successfully completed the financing rounds. Only in the last two years, we have witnessed about 30 financing rounds through bond issues, with a cumulative value of over 1.5 billion euros. The size of the funding rounds started at 200,000 euros and even reached hundreds of millions of euros. All this proves that the Stock Exchange is for any company determined to develop", stated Radu Hanga, Bucharest Stock Exchange’s Chairman of the Board of Governors.

Ready Office Rent addresses to small and medium-sized entrepreneurial companies that want ready-to-use office space, adapted to the requirements of the activity they carry out, with all the necessary utilities and facilities, in the “all inclusive” pricing system. The system implemented by Ready Office Rent becomes complementary to the classic rental system, helping entrepreneurs to set their business dynamics according to their objectives.

”The offices provided by Ready Office, located in an ultra-central location, function as a support both for the companies at the beginning of their activity and for those in full development. The instant functionality of the offices and the quality of the services have contributed to the development of many clients' businesses and we are happy for our contribution. In the next period, we plan to expand Ready Office to other points of interest in the Capital in order to support those who want a safe and easy environment for carrying out their own activities. I appreciate that coming to the Bucharest Stock Exchange generates a financial health for the company which will increase its value and consolidate a position on the market segment specific to the activity carried out", said Narcisa Mindu, Ready Office Rent Sole Administrator.

The bond issue is listed with the ticker ROR22 and includes 51,882 guaranteed bonds, denominated in RON, with a nominal value of RON 100/ bond. Thus, the value of the issue amounts to almost RON 5.2mn. The bonds have a fixed interest rate of 8% per year, payable semi-annually, and the issuer guarantees the bonds with future receivables that it has to collect from its customers. The issue was sold through a private placement in October 2019 and will mature in October 2022. The bonds were purchased by 97 investors (5 legal persons and 92 natural persons).

The listing of the bonds on the BVB MTS was assisted by the brokerage company Prime Transaction.

”Attracting financing through bond issues listed on the Bucharest Stock Exchange is increasingly becoming a viable alternative for companies and, at the same time, is an opportunity for issuers to present themselves to potential investors. There are positive signals from the entrepreneurial environment regarding the interest for financing their projects through bond issues and shares listed on BVB", said Ionel Uleia, Prime Transaction CEO.

Ready Office Rent intends to use the funds gathered through the bonds to finance its current activity, as well as to finance strategic development projects. Also, the money can be used for investments, in case opportunities will be identified in this regard.

The company's turnover is obtained entirely from the services offered by renting and subletting its own or leased real estate assets. Ready Office Rent manages an area of approximately 2,500 square meters, consisting of a number of 50 offices located in Victoriei Square in Bucharest.

The company ended last year with a turnover of RON 293,000, double than the level registered in 2018, while in 2020 H1 the turnover rose to RON 344,000. The net profit in 2019 was RON 35,000, compared to RON 106,000 in 2018. In the first six months of 2020, Ready Office Rent recorded losses of RON 250,000.

The company's management estimates that the turnover will exceed RON 1mn this year, and by 2022 it will reach RON 1.8mn, while the forecasted profit for the current year is RON 52,000, and in the next two years the net profit would gradually increase to RON 90,000.

Ready Office Rent was established in 2012, having the name of Tradexpress Impex SRL (limited liability company), and in 2019 it was transformed from SRL into SA (joint-stock company) and the name was changed to the current one. The issuer has a share capital of RON 100,000, divided into 10,000 shares with a face value of RON 10/ share. The company's shares are held by Lucian Ciofoaia (9,950 shares - 99.50% of the share capital) and Narcisa Mindu (50 shares - 0.50% of the share capital).

More information about Ready Office Rent is available in the Memorandum prepared for admission to trading and published on the BVB website, at this LINK.