Impact Developer & Contractor, controlled by businessman Gheorghe Iaciu, has proposed a bond issuance worth 135 million RON over five years as a financing option. If shareholders approve, it will be one of the largest financings a private company has attempted to attract from the stock exchange in recent years.
“Market conditions are now much more favorable for us. The residential real estate market started well this year, and we need financing to increase production speed. We opted for bonds because it is a loan that offers us more flexibility and is cheaper than bank credit,” stated Gheorghe Iaciu, majority shareholder of Impact with 49% of the shares.
The funds will be invested to finance the construction of the Greenfield Plaza urban center in Bucharest and for the development of the first phase of the Barbu Văcărescu project, as well as to cover some of the company’s older loans. Impact has projected an operating profit of approximately 33 million RON for this year, after recording an operating loss of 14.3 million RON in 2014. In 2014, the company returned to (net) profit – 4.1 million RON, following a loss of 42.4 million RON in 2013.
Source: Imobiliare.Net
Frequently Asked Questions
What is the value of the bond issuance proposed by Impact?
The company has proposed a bond issuance worth 135 million RON with a five-year maturity.
Who controls Impact Developer & Contractor?
The company is controlled by businessman Gheorghe Iaciu, who holds a 49% stake.
How will the funds raised through this financing be used?
The funds will finance the construction of Greenfield Plaza, the first phase of the Barbu Văcărescu project, and the refinancing of older loans.