January 23 (SeeNews) - Investment firm Opportunity Bulgaria Investment [BUL:OPBI] said it has decided to issue a five-year bond worth up to 8 million levs ($4.45 million/4.09 million euro) by way of an initial public offering.
The company will issue 8,000 ordinary, unsecured, convertible bonds at a price of 1,000 levs apiece, equal to their par value, Opportunity Bulgaria Investment said in a bourse filing on Monday.
The bonds will have a fixed annual coupon of 5% with payments due semi-annually, whereas the principal will be repaid fully at maturity. The bond issue can be repaid at any time, either fully or partly, at the company's request with a 10-day notice to its bondholders.
The proceeds from the offering will go towards bolstering investments and generating current income while mitigating risk by diversifying the company's portfolio of financial instruments, Opportunity Bulgaria Investment said. The company's strategy centres around receiving income from trading financial instruments, interest and dividends.
The bond placement will be considered successful if it attracts no less than 5 million levs.
The bonds can be converted at maturity, with each bond corresponding to 500 shares in the company at a conversion price of 2 levs apiece, Opportunity Bulgaria Investment said.
Shares in the company last traded on January 17 when they closed at 1.50 levs on the BaSE market of the Bulgarian Stock Exchange, bourse data show.
(1 euro = 1.95583 levs)