Globalworth begins trading EUR 550 mln bonds on the BVB

Globalworth Real Estate Investment Limited bonds (GWI22) are available on the Bucharest Stock Exchange (BVB) starting this Monday, the company has announced.

The company’s main objective is to “go on investing, develop and identify new growth opportunities on the local market, said Dimitris Raptis, deputy CEO and Chief Investment Officer Globalworth.

The real estate developer announced in June that it had successfully issued a EUR 550 million eurobond. It is the largest publicly traded bond issued by Globalworth and the first Romanian corporate bond to reach a benchmark of EUR 500 million. “This represents a new positive message Romania is sending to investors; that the Bucharest market has the capacity and the instruments to absorb significant transactions, be they IPOs or bonds,” commented Lucian Anghel, the president of the BVB.

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Globalworth’s five-year euro-denominated bond matures on 20 June 2022 and carries a fixed interest rate of 2.875 per cent payable annually beginning on June 20 2018, according to a company press release back in June.

Globalworth also applied at that time for the bonds to be admitted to the Official List of the Irish Stock Exchange and to trade on its regulated market, according to the same source. The bonds have been rated BB+/Stable by Standard & Poor’s and Ba2/Stable by Moody’s.

“The net proceeds from the offering will be used to repay certain of the Company’s indebtedness and for general corporate purposes,” reads the press release.

The European Bank for Reconstruction and Development (EBRD) said at the end of June that it had invested EUR 50 million in the EUR 550 million bond issued by Globalworth.

Globalworth was founded and it is headed by businessman Ioannis Papalekas. It owns 15 properties worth some EUR 997 million, all of which are located in Romania.

Most of these are office properties including Nusco Tower, Green Court, Tower Center International, BOB, BOC and Upground. Globalworth is presently the largest office-property owner and developer in Romania. Its main shareholder is South-African investment fund Growthpoint Properties.

Simona Bazavan