The first public offering of corporate bonds in the history of the Romanian capital market, issued by Bittnet Group, was oversubscribed

The Bittnet Group successfully concluded the first public offering of corporate bonds in the history of the Romanian capital market, the issue being oversubscribed more than twice, in 15 days, according to the investment prospectus.

The purchase orders were settled only for investors who subscribed at 100 RON (issue price) and at higher prices (101, 102, 103 and 104 RON), informs the company through a press release.

The bonds are issued in RON, with a maturity of 4 years from the date of issue and an annual interest rate of 10%, payable quarterly.

Between 2016 and 2022, Bittnet Group successfully completed another 6 bond offerings, attracting 43 million RON, all through the private placement mechanism (instead of the public offering). Of these, three issues were already redeemed at maturity or early, and 1,430 investors received interest of 10.5 million RON, plus the return of the invested capital – almost 20 million RON.

“Building on this history of success, we have proposed that, starting from 2023, we will enjoy the advantages of our unique status as a Frequent Issuer, and make a series of successive public offers, exactly as the state is doing with Fidelis. The oversubscription of the BNET27A offer, the number and the dynamics of the orders placed during the subscription period – the participants having the opportunity to modify their orders depending on their own strategy and the evolution of the placements of the other participants – confirms to us that this type of process is a success. I am glad that although the feedback received in the preparation of the offer was a daunting one, we are now at the point where we are celebrating a success that confirms both the story we have been building for 16 years and the fact that we have to trust the mechanisms of the capital market,” Cristian Logofatu, co- founder of Bitnet Group, said.

He emphasized that during the year the company intends to carry out several such offers, and the capital raised in this way will help to fulfill both Bittnet Group’s M&A strategy, as well as the group’s mission, “to accompany Romania in its digital journey, in this Digital Decade, as declared by the European Commission, in which it is a priority to digitize both our SMEs and public institutions”.

The private placement and listing of the bonds were carried out with the support of BRK Financial Group, and TradeVille was in charge of promoting the offer. Their contribution to the success of the public offer was essential.

Bittnet Group is organized in 4 divisions: Education (Bittnet Training, Equatorial), Cloud & Infrastructure (Dendrio, Optimizor, TopTech, 2Net), Cybersecurity (Fort) and Business Platforms & Software (Elian solutions and Nenos).