A new issue of Bittnet System bonds starts trading today on the Bucharest Stock Exchange

Bittnet Systems is listing a new issue of stock exchange bonds on Friday, 2 February 2024, worth 10 million lei.

The newly issued Bittnet instruments will be traded on the Regulated Market of the BVB under the symbol BNET28. Apart from today’s bond issue, Bittnet has a further two bond issues listed with the BVB, denominated in EUR and the national currency (symbols: BNET26E and BNET27A). The three bond issues are worth a cumulated 25 million lei, approximately.

The bond issue was developed following a public sale offer from 27 November to 12 December 2023. Bittnet Systems issued 100,000 corporate, non-guaranteed bonds, denominated in lei, at nominal value 100 lei, 4 years 6 month maturity and due date 15 June 2028. Similar to the mechanism of the previous offer, BNET27A, for bond offer BNET28 the investors were able to subscribe, in the price range, between 94 and 106 lei, similar to the price discovery mechanism of share offers, and the Issuer decided to close the offer at a price equal to its nominal value.

The interest rate is fixed at 9.6% per annum, payable quarterly through the Central Depository. The funds will be used to cover the general funding needs of the group.

“Considering the significant interest in this shown by the investors who subscribed it 180%, we now plan to continue our series of bonds under the same mechanism. Therefore, subject of obtaining the necessary approvals specific to public offers, we aim to launch a further bond issue in the first quarter of 2024, under similar conditions to the one we are launching today”, stated Mihai Logofatu, CEO Bittnet.

“Bittnet Systems was the first IT company listed on the Bucharest Stock Exchange in 2015, and in the past nine years has become the issuer that regularly accessed the funding instruments that the Romanian capital market makes available for development, increased visibility and expansion. From an 8 million lei capitalisation at the start of trading, Bittnet Systems is now evaluated by investors at 174 million lei, and its shares are included in the FTSE Global Micro Cap indices of international index provider FTSE Russell” stated Adrian Tanase, CEO of the Bucharest Stock Exchange.

The bond issue listed on the Bucharest Stock Exchange today was realised with the help of BRK Financial Group.

Together with Bittnet, we are achieving the third bond issue under private placement or public offer, denominated in Euro or RON and at equivalent nominal value in lei of about 25 million. Moreover, it is the third issue that, together with Bittnet, we have launched on the secondary market in the past 12 months. If we look at the traded volumes of previous bond issues already listed, BNET26E and BNET27A, we notice significant liquidity for both instruments. It is a sign that investors are interested in such financial instruments, even after the initial offer” stated Monica Ivan, CEO BRK Financial Group.

In 2020 Bittnet Systems achieved transfer to the Regulated Market of the BVB, as the first issuer in the IT sector present on the main exchange segment. Now the shares in Bittnet Systems are included in the FTSE Global Micro Cap indices of international index provider, FTSE Russell.

The bond issue to be traded as of today, 2nd February, on the Bucharest Stock Exchange, under the ticker symbol BNET28, is the company’s eighth since its listing to date. Of these, three are trading, the other either redeemed early, or repaid on maturity.

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