The Bucharest Stock Exchange (BVB) announced on Tuesday that the oldest network of jewellery and watch stores in Romania, Cellini has started trading its first bond issue on BVB’s Multilateral Trading System, according to a press release.
The bonds will trade under the ticker CELL25 and the funds will support the expansion of the company’s chain and the increase of online sales.
„We are glad that the team which maintained and grew Cellini’s name in Romania chose the capital market to implement its development plan. At the same time, the company became one of the 23 corporate bond issuers listed this year,” said Radu Hanga, Bucharest Stock Exchange President.
Chronostyle International, the company that operates Cellini stores, sold in a private placement, held in May 2020, a number of 16,000 corporate bonds, guaranteed and non-convertible worth EUR 1.6mln.
The bonds have a nominal value of EUR 100, a 5-yrs maturity and a coupon of 7% p.a., payable on a quarterly basis.
BVB explained that the issue is guaranteed with a real estate property in Bucharest with a market value of over EUR 3mln. CELL25 bonds are based on the restructuring of a series of bonds issued by the company in November 2017 with a total value of RON 9mln and that was subscribed by 38 individuals and legal entities.
The restructuring of the previous bond issue involved the change of the issuance currency from RON to EUR, of the nominal value from RON 100 to EUR 100 of the maturity date from November 27th 2020 to May 27th 2025, of the principal from RON 9mln to EUR 1.6mln, as well as a pro-rata partial early repayment of the principal of the 2017 bond issue.
Private placements from 2017 and 2020 were carried out with the support of BRK Financial Group.
The company registered in the first 6 months of 2021 revenues of RON 17.8m/n, increasing by 69% compared to H1 2020. The profit for the period was over RON 831,000 a significant increase compared to the loss of RON 1.2m’n reported in H1 2020.