July 10 (SeeNews) - Bulgarian diversified group Severcoop Gamza Holding [BUL:6S4] intends to issue eight-year corporate bonds worth up to 20 million levs ($12.0 million/10.2 million euro), it said on Tuesday.
Severcoop Gamza Holding plans to use the proceeds from the issue to acquire majority and minority stakes in companies, in order to form a diversified portfolio, the company said in a statement.
The bonds will carry an annual coupon of 5.0% with payments due semi-annually.
Severcoop Gamza Holding is in the process of increasing its share capital, with the subscription rights for the issue admitted to trading on the Bulgarian Stock Exchange earlier this month.
The company will seek to double its capital to 10.7 million levs from 5.35 million levs, by issuing 2,673,899 new shares with a nominal value of 2 levs each. The shares will be offered for subscription at a price of 4 levs apiece.
According to the capital increase prospectus, Severcoop Gamza Holding intends to use the proceeds to purchase stakes in companies active in production of wine, milk, foie gras and duck meat products, as well as water bottling and distribution.
Severcoop Gamza Holding was set up in 1998 as a privatisation fund.
(1 euro = 1.95583 levs)