November 4 (SeeNews) - Romanian holding group Teilor said on Thursday it intends to carry out a private placement of corporate bonds worth an estimated 45 million lei ($10.5 million/9.09 million euro) before the end of the year and then list them on the alternative segment of the Bucharest Stock Exchange, AeRO.
More than half of the intended funding will be directed to the group's chain of jewelry shops Teilor, for expansion of the jewelry store network across Romania and Europe, as well as investments in the eCommerce platform, the group said in a press release.
Approximately 18% of the capital will be directed to the group's financial lending company Invest Intermed GF IFN, to open new agencies and provide working capital for them, as well as investments that will accelerate the growth of its market share in Romania.
The remaining funds of the intended bond issuance, around 27%, will be directed to Teilor Invest Exchange, a network of exchange offices, and will be primarily used to finance the development of the network across Romania and meet working capital needs.
"Throughout the years, our strategy has always been to capitalize profits to continue the sustainable development of our group, supported by bank financing. Today, we find ourselves at a defining moment for our business when we can accelerate the speed at which we develop and significantly increase our footprint in Romania and across Europe," Teilor Holding founder and board chairman Florin Enache said.
The corporate bonds offer may have two tranches, denominated in euro and lei, respectively, in order to better serve investor demand and the development of the holding company. The bonds will have a maturity of five years, and the interest rate will be established in the private placement.
(1 euro=4.9486 lei)