Bulgaria's Holding Varna to issue 15 mln euro bond

The company will issue up to 30,000 unsecured, convertible bonds at a price of 1,000 levs apiece, equal to their par value, Holding Varna said in a bourse filing.

The bonds will carry a floating coupon based on six-month EURIBOR plus 1%, but not less than 2.75% and not more than 5%. Coupon payments will be due semi-annually, whereas the principal will be repaid fully at maturity.

The proceeds from the offering will finance the company's First Alley investment project aimed at building an arts and entertainment complex on the Varna waterfront. The project's total cost is 73.1 million levs, with Holding Varna having invested 45.8 million levs by the end of 2023.

The bond placement will be considered successful if it attracts no less than 15 million levs.

The bonds can be converted at maturity, with each bond corresponding to 15.873 shares in the company at a conversion price of 63 levs apiece, Holding Varna said.

As of 1407 CEST on Tuesday, shares in Holding Varna traded flat at 45.20 levs on the Bulgarian Stock Exchange.

(1 euro = 1.95583 levs)