Bittnet issues new bonds on Bucharest Stock Exchange to finance expansion

Bittnet , the first IT company listed on the AeRO market of Bucharest Stock Exchange (BVB), launched its second corporate bonds issuance worth a total of RON 4.5 million, which began trading on the Alternative Trading System of BVB from November 28, 2017. The funds thus obtained will be used to chiefly finance the acquisition of Gecad Net, founded and previously controlled by the local entrepreneur Radu Georgescu.

"To acquire a business is, first of all, about people, team and, of course, partners, represented by suppliers and customers. We will strive for the transition to the new structure to be efficient and smooth for all parties involved. The new team will be aligned to Bittnet's development goals and plans, which we have detailed upon both at the time of listing and in the annual and semi-annual reports: we aim to strengthen the leadership position on the IT training market and the largest multi-cloud integrator in Romania," explained Mihai Logofatu, CEO of Bittnet.

The second issuance of Bittnet bonds takes place just 14 months after the first similar corporate event, which was worth RON 4.18 million.

"Bittnet is the best example of how a listed company can extensively use the opportunities offered by the capital market to finance its development. In 2015, the company was the first IT firm listed on the AeRO market of BVB, then it issued pre-emptive rights and launched two corporate bond issuances worth a total of nearly two million euros," stated Lucian Anghel, President of BVB.

This second issuance comprises 45,000 bonds, non-guaranteed, RON denominated, with a nominal value of RON 100 and a total value of RON 4.5 million. The yearly interest rate is fixed at 9 percent, and the maturity date is September, 2022. The offer was intermediated by IEBA TRUST.

Bittnet is a Romanian IT entrepreneurial company, founded in 2007. The company offers IT courses, IT solution implementation services (network infrastructure, routing, switching, servers, datacenter, virtualization, security, telepresence or wireless), technical support services, while being focused on new technologies and innovation. In April 2015, Bittnet became the first IT Romanian company which was listed on BVB.

The AeRO market was launched on February 25, 2015, and was designed for listing early stage companies, start-ups and SMEs to finance their projects, support growth and increased visibility on their way up to become some of Romania’s best-performing companies.