Globalworth Real Estate Investment Limited, one of the largest real estate investment companies focused on the CEE region, announced on July 31 the admission to trading on the Bucharest Stock Exchange (BVB) of its corporate bonds worth €550mn.

The bond is the largest issue of this type on the Romanian stock exchange. The issue is aimed at refinancing part of the fund’s maturing debt, but also prepares for further expansion.

"The admission of the corporate bonds issued by our company to trading on the BVB marks a milestone for the company, for our growth path and a promise we are making regarding our future development plans," said Dimitris Raptis, deputy CEO and chief investment officer at Globalworth.

"Our main focus remains further investing, growing and sourcing new opportunities in Romania, our home country and this is another step we make towards this mission, by aiming to simplify our debt capital structure and reducing our average cost of debt," Raptis added. 

Globalworth corporate bonds have also been admitted to trading on the regulated market of the Irish Stock Exchange.

Globalworth is active in the SEE and CEE regions, with its primary focus on Romania. The company’s portfolio comprises high quality real estate investments valued at around €983.3mn at the end of March, all of which are located in Romania.

The bond trading on the BVB is a positive message to investors that the local capital market has the ability and the instruments required to absorb significant transactions, when it comes to both IPOs and bonds, BVB president Lucian Anghel said.

Earlier this year, telecom operator Digi Communications carried out an IPO on the Bucharest bourse, while last year, private equity fund Value4Capital (V4C) sold its entire 36.25% stake in Romania’s largest private medical services provider MedLife through an IPO, while the International Finance Corporation (IFC), a member of the World Bank Group, sold a 7.75% stake.

"The admission to trading on the Bucharest Stock Exchange of the corporate bonds issued by Globalworth should be an example for other companies and, hopefully, the Romanian business environment will start looking more towards the capital market as a source of funding. BT Capital Partners is very involved in helping to increase the level of financial intermediation in Romania and wants to become an example in this respect," said Paul Prodan, chairman of the board of directors of BT Capital Partners, which advised Globalworth on the issue.

Among Globalworth's most ambitious plans, the fund plans to buy Israeli group Africa Israel, which controls the biggest mall in Romania – AFI Palace Cotroceni. Globalworth is in the race for Africa Israel, or some of its divisions, alongside Israeli concern Brosh Funds Management and real estate funds Patron Capital and Lone Star, according to Globes Israel.