Croatia's Sunce Koncern hikes capital by 44.4 mln kuna (5.9 mln euro)

Sunce Koncern has issued 444,000 new shares at 100 kuna apiece, the company said in filing to the Zagreb Stock Exchange (ZSE).

Earlier this month, the company successfully completed a public offering on the ZSE, raising 68.8 million kuna.

It announced at the time that it will issue new shares which will be acquired by an unnamed Croatian institutional investor. The raised funds, Sunce said, will be used to repay part of the company's debt and carry out its investment plan.

Also this month, Sunce Koncern said it aims to reduce its debt to three times earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2019 from 4.2 times EBITDA this year.

At the end of the first half of 2017, the long-term debt of Sunce Koncern stood at 419.3 million kuna and short-term liabilities amounted to 277.4 million kuna.

Sunce Koncern, founded in 2004, owns and operates a chain of hotels and resorts under the Bluesun brand in Dalmatia, Bol, Brela, Tucepi, Starigrad Paklenica, and Marija Bistrica.

(1 euro = 7.50086 kuna)