Money Buzz! Europa

Tag: Bucharest Stock Exchange

  • Restart Energy launches a green bond issue to finance investments

    Restart Energy launches a green bond issue to finance investments

    Restart Energy launches a green bond issue. Through this process, the company aims to obtain 3-5 million euros for investments.

    The interest will be about 8-10%, and the listing on the Bucharest Stock Exchange will take place in the coming weeks.

    Restart Energy, one of the independent suppliers of electricity and natural gas on Romanian market, aims to double the number of household customers this year to 65,000 and increase its revenues about 80% – up to 220 million lei.

    83% higher revenues compared to 2020

    The advance of the number of customers and the addition of new business lines – such as the sale of equipment – will lead to a significant increase in turnover.

    Thus, Restart Energy relies on 220 million lei revenues for 2021, more by 100 million lei (+ 83%) than last year.

    The company’s management plans to reach a net profit of 24.2 million lei at the end of 2021, compared to approximately 13 million lei (estimated) last year.

    USD 500 million projects by 2025

    Restart Energy wants to launch this year a plan for the acquisition and development of renewable energy projects with a capacity of 500 MW. The projects would be completed by the end of 2025.

    The company’s management wants to purchase and develop 100 MW of solar, wind, biogas, biomass, and geothermal energy projects every year until 2025.

    This Restart Energy plan will require investments of approximately $ 100 million per year. In this regard, Restart Energy recently entered into a joint venture with the consulting and fund management company Interlink Capital Strategies (USA).

    This partnership will support Restart Energy in executing the strategy of developing green energy projects worth $ 500 million in Romania and neighboring countries while expanding into the US market.

  • Aurachain is the new technology partner for the Bucharest Stock Exchange

    Aurachain is the new technology partner for the Bucharest Stock Exchange

    Aurachain is the new technology partner for the Bucharest Stock Exchange (BVB) and the Central Securities Depository in Romania.

    Two innovative solutions developed using the low-code Aurachain platform will be implemented to accelerate and optimize the shareholder voting process at exchange listed companies using blockchain technology, and to facilitate access to the capital market by digitizing investor enrollment. 

    The first solution is the digitization of the voting process in the Annual General Meetings (AGMs) and the Extraordinary General Meetings (EGMs).

    The Intervote digital platform, developed on the Aurachain platform, automates safe voting mechanisms, and ensures through the use of blockchain the transparency and traceability compliance required by the current regulatory framework. 

    The solution will be available to all companies listed on BVB Regulated Market and the AeRO market, part of BVB’s Multilateral Trading System, to streamline the voting process.

    The second solution is the digitization of the online process of opening trading accounts by individual investors, through a standardized service that the Central Securities Depository will provide as a new entry point for all new individual investors.

    The technology solution developed on the Aurachain platform has the role of facilitating the investors access to the Romanian capital market in a completely automated and fully secure manner.

    Actions such as registration, identity verification, facial recognition and Know Your Client (KYC) processes will be performed exclusively in a digital environment and will be automated. 

    Through the new partnership with Aurachain, BVB takes another important step towards the modernization and development of the Romanian capital market.

  • Laptaria cu Caimac took the first step on the Bucharest Stock Exchange

    Laptaria cu Caimac took the first step on the Bucharest Stock Exchange

    Agroserv Mariuta, the company that operates under the dairy brand Laptaria cu Caimac, took the first step on the Bucharest Stock Exchange on December 8th, where the company’s first bond issue was listed.

    The bonds were listed on BVB’s Multilateral Trading System (SMT) and are traded with the MILK25E ticker.

    Agroserv Mariuta carried out a private placement in November through which it sold bonds denominated in euros, worth EUR 3mn.

    The bonds will reach the maturity on November 2025 and they have an interest rate of 5.25% p.a..

    The private placement was oversubscribed, and the offer was supplemented, the interest obtained being the lowest financing cost obtained in 2020 for similar bond offers.

    94 investors, both individuals and institutional investors, subscribed to the private placement.

    Agroserv Mariuta is a company with integrated activity, comprising a field farm, on which it exploits 3,000 hectares of agricultural land cultivated with cereals and oil plants, and a cow farm, thus being a dairy producer. The cow farm has a herd of about 2,800 heads.

    The company’s shareholders include Madalina Oana Cocan – 98%, Adrian Cocan – 1% and Nicusor Serban – 1%.

    From June 2018 until now, Laptaria cu caimac has developed its distribution in numerous international store chains (IKA): Mega Image, Auchan, Cora, Kaufland, Carrefour, Profi, Selgros, Metro Cash & Carry, in independent networks shops in the country: Diana – Valcea and Gorj County, Panemar – Cluj County, Ana Pan – Bucharest, Fraher – Tulcea and in many grocery stores, convenience stores and traditional stores, but also in HoReCa.

    Agroserv Mariuta ended 2019 with revenues of RON 63.2mn, up by 30% compared to the previous year. In the first half of this year, revenues amounted to RON 37.6mn, 40% above the level of the same period last year.

    The company’s management estimates that revenues will reach almost RON 70mn in 2020, and this indicator will increase in the coming years, so that for 2025 it estimates total revenues of almost RON 142mn.

  • Libra Internet Bank bond issue will start trading on Bucharest Stock Exchange

    Libra Internet Bank bond issue will start trading on Bucharest Stock Exchange

    Libra Internet Bank bond issue will start trading on BVB Multilateral Trading System (MTS) on 3 September 2020.

    The bank attracted EUR 4.29mn, through a private placement for subordinated bonds, unsecured and denominated in EUR, and conducted on the capital market between March 17th and 23rd, 2020.

    There are 8.593 of bonds at a face value of EUR 500 at a 5% p.a. interest (payable on a half year basis).

    The private placement for Libra Internet Bank bonds was intermediated by TradeVille.

    The bonds were subscribed by 27 investors, of which 2 are institutional investors and 25 retail investors (one legal entity and 24 individuals).

  • Norofert corporate bonds will start trading on BVB MTS today

    Norofert corporate bonds will start trading on BVB MTS today

    Norofert corporate bonds will start trading on Friday, June 5th, on BVB Multilateral Trading System (MTS), three months after the company’s listing on the AeRO market within the BVB MTS.

    The bonds were bought through a private placement by 93 investors (88 individual investors and 5 institutional investors).

    The private placement and the admission to trading were carried out by Tradeville, as Authorized Advisor.

    Norofert will use funds for expansion on the US market

    The company intends to use the funds attracted for expansion on the US market, more specifically for the approval of products in order to enter the US market.

    Norofert also intends to use the funds raised as working capital to support the growing demand for the company’s products, as well as the growing portfolio of services and product lines.

  • Bucharest Stock Exchange (BSE) lost 34% since the beginning of the year

    Bucharest Stock Exchange (BSE) lost 34% since the beginning of the year

    Bucharest Stock Exchange (BSE) lost from the start of the year, since the first news about Coronavirus, 34% (EUR 13,2 billion) from the market capitalization, according to ”The Valuation multiples in the context of Bucharest Stock Exchange and local M&A market” report of PwC Romania.

    Thus, the decrease since the beginning of this year exceeded the increase of 23.4% recorded in 2019 compared to 2018, which marked the best performance of the BSE since the financial crisis. In the last 8 years the average yield registered by the stock exchange indices has exceeded the government bonds yield.

    In 2019, BSE’s capitalization increased by 23.4% to EUR 37.8 billion, sustained by high dividend yields, local economic growth above the EU average, promotion to the emerging market status and a series of changes to the legislative provisions.

    In the context of COVID-19, BET, the main index of the stock exchange, fell by about 25% between 30 December 2019 and 30 March 2020, from a 35.1% increase recorded last year. The same decrease was registered by the BET-TR index, which includes the first 17 most traded shares, after an advance of 46.9% in 2019.

    In the period from 1 January 2012 to 30 March 2020, the median excess return of BSE indices exceeded Risk free rate by 4.8% for BET and 13.9% for BET-TR. As far as for the 5-year CDS (Credit Default Swap) evolution, including the cost against non-payment, it is noticed a significant increase of 30% between February and March amid the sanitary crisis driven by coronavirus.

    The main conclusions of the report for 2019

    • Romania had a market capitalization estimated at 17.9% of GDP in 2019, which is below the level observed in Hungary, Czech Republic and Bulgaria.
    • In 2019, the stock market indices hit the highest level in the last 10 years, with BET-TR dividend yield averaging 8% – still at a significant level.
    • The total market capitalization of the 79 analyzed listed companies (for which financial information was readily available) jumped by 33.4% in 2019 as compared to the previous year.
    • In 2019, no IPOs were concluded on the Bucharest Stock Exchange. Moreover, the number of companies listed on the main market fell from 87 in 2018 to only 83 in 2019 following the delisting process of Oltchim, Boromir Prod, Amonil Slobozia and Petrolexportimport.
    • There is a high concentration of listed issuers on BSE regulated segment, with top 5 listed companies accounting for 65% of the total market capitalization at the end of 2019
    • At the top level, companies are active in the Oil &Gas, Financial Services and Electricity sectors. Therefore, the degree of representation of the economic sectors on the local capital market is low in the absence of several industry leaders.
    • In 2019, the electricity sector registered the highest level of market capitalization.
    • The highest P/E multiple was reported in the Healthcare sector whilst the lowest were in the Industrial sector and the Financial services sector.
    • For the financial services and industrial sectors, the downward trend observed in the last years continued and the valuation multiples of the companies listed on the BSE have decreased significantly and are now at the minimum level of the last five years. The Healthcare sector is at the highest P/E ratio observed in the last five years.
    • During 2007 – 2019, the market capitalization for companies operating in Materials, Industrial and Healthcare sectors were least influenced by the economic cycles, whereas Consumer and Oil and Gas were the most affected. Over the same period of time, the smallest variance in the P/E of companies was observed within Oil & Gas.