Investment fund Globalworth, one of the most active players in the local office market, led by Greek real estate tycoon Ioannis Papalekas, will issue bonds of EUR 550 million in the next 30 days.

The bonds will have a five-year maturity and pay a yearly interest rate of 2.875%. Interest can be paid annually starting June 20, 2018.

The bonds will be traded on the Irish Stock Exchange in Dublin, according to an official announcement by the company. Globalworth’s bonds received a BB Plus / Stable rating from Standard & Poor's and Ba2 / Stable from Moody's.

The money raised will be used to pay old debts as well as to finance the company’s next growth phase in Romania and the broader CEE region, predominantly in Poland. Deutsche Bank AG, J.P. Morgan Securities plc and UBS Limited played a role as joint bookrunners in the deal, while BT Capital Partners and Rand Merchant Bank, a division of FirstRand Bank Limited in London, acted as co-managers.

“We are delighted by the strong interest shown from international investors in our inaugural Eurobond transaction and a landmark bond issue for a real estate investment company active in the broader CEE region,” said Dimitris Raptis, Globalworth deputy CEO and Chief Investment Officer.

Globalworth had a portfolio of properties valued at EUR 977.5 million at the end of December 2016, all located in Romania.

editor@romania-insider.com