March 13 (SeeNews) - Bulgarian financial leasing company Finance Direct [BUL:0FDE] said on Monday that it will seek its shareholders' approval to issue a five-year bond worth up to 1.5 million euro ($1.59 million).
The proposed issue will consist of 1,500 bonds with a nominal and issue value of 1,000 euro and will carry a fixed annual coupon of 6.75%, with payments due semi-annually, Finance Direct said in a bourse filing. Principal payments will be made in five instalments of 300,000 euro, alongside the last five coupon payments.
The bond placement, which would be Finance Direct's seventh so far, will be considered successful if it attracts at least 1 million euro. The proceeds will be used to fund the company's main activity of providing cash loans and car leasing, as well as for partial repayment of bonds from previous issues.
Finance Direct plans to appoint Elana Trading as its investment intermediary.
The proposal will be put to the vote at an extraordinary general meeting of shareholders on April 24.
Finance Direct currently has two bond issues with outstanding principals of 650,000 euro and 2 million euro, which will mature in December 2023 and November 2024, respectively.
($ = 0.9446 euro)