Globalworth raises €550m for Polish expansion

Romania's Globalworth Real Estate Investment has raised €550 million through a bond issue to further expand its presence in the central and eastern Europe market, with a focus on Poland.

Romania’s Globalworth Real Estate Investment has raised €550 million through a bond issue to further expand its presence in the central and eastern Europe market, with a focus on Poland.

The five‐year euro‐denominated bond, issued on 13 June, has an annual fixed coupon of 2.875 percent.

“The strong interest shown from international investors in our inaugural eurobond transaction marked an historical moment not only for the company, but also for Romania – it is the largest ever bond issued by a corporate active in Romania,” Dimitris Raptis, deputy CEO and CIO at Globalworth, said.

The bond issue was 1.3x oversubscribed, mostly by asset managers, whose subscriptions made up 82 percent. Subscriptions from insurers and banks accounted for 7 percent and 2 percent respectively.

Investors in the UK had the strongest appetite for the bonds, as subscriptions from this market accounted for 43 percent. Demand from Germany made up 25 percent, followed by France with 12 percent.

Investor interest in the Romanian real estate market shows a “vote of confidence in the strength of the Romanian economy”, Raptis added.

The new funding will allow Globalworth to simplify its debt capital structure and reduce its average cost of debt.

“Moreover, the funding has increased available liquidity for our next phase of growth in Romania, our home country, and the broader CEE region, predominantly in Poland, the market we are looking to expand into,” Raptis said.

The Romanian real estate specialist applied for the bonds to be admitted to the Irish Stock Exchange and to trade on its regulated market.

Deutsche Bank, JP Morgan Securities and UBS acted as joint bookrunners, while BT Capital Partners and Rand Merchant Bank, a division of FirstRand Bank, acted as co‐managers for the issue.

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