Bittnet Systems (BNET), a group of IT companies listed on the main market of the Bucharest Stock Exchange (BVB), announced the early redemption of RON 4.5 million (EUR 0.9 mln) of bonds maturing in 2022.

"After the early redemption of BNET19 bonds in 2019, we decided to repay the BNET22 issue in May 2021," announced Cristian Logofatu, co-founder of Bittnet Group.

Between 2015 and 2018, Bittnet Group has used corporate bond issues to finance its accelerated development. However, the company's shareholders have decided to switch to issuing preferential shares (that provide dividends but not voting rights) and use the money to pay back the bonds.

"This approach will greatly increase the business profitability by reducing financing costs," Logofatu explained.

This could have a positive effect on the Bittnet Group's valuation, thus bringing benefits to all shareholders, he added.

Bittnet now has a market capitalization of RON 168 mln (EUR 34 mln).

andrei@romania-insider.com

(Photo source: Facebook/Bittnet)