April 24 (SeeNews) - Bulgarian financial leasing company Finance Direct said on Monday that it was authorised by its shareholders to issue a five-year bond worth up to 1.5 million euro ($1.65 million).
The placement will comprise 1,500 bonds with a nominal value of 1,000 euro, equal to their issue price, Finance Direct said in a bourse filing.
The bonds will carry a fixed annual coupon of 6.75%, with interest payments due semi-annually. Principal payments will be made in five instalments of 300,000 euro, alongside the last five coupon payments.
The bond placement, which is Finance Direct's seventh so far, will be considered successful if it attracts investment of at least 1 million euro. The raised funds will go towards financing the company's main activity of providing cash loans and car leasing services, as well as to partially repay previous bond issues.
Finance Direct currently has two bond issues with outstanding principals of 650,000 euro and 2 million euro, which will mature in December 2023 and November 2024, respectively.
($ = 0.9109 euro)