Ronson Development raises PLN 32.3 million from private placement of bonds
Ronson Development has successfully issued another series of bonds for 4-year period with total nominal value of PLN 32.3 million.
“We have successfully carried out another private placement of bonds, despite the turmoil on the corporate bond market observed in Poland over the last year. We view this fact as confirmation of investors’ confidence in our company, its healthy balance sheet, consistently implemented strategy and predictable financial results,” said Rami Geris, vice-president and chief financial officer at Ronson Development.
U-series bonds, with a nominal value of PLN 1,000 each, are 4-year bonds maturing at the end of January 2023. In addition, the bonds will be subject to 15% depreciation after 2 and 3 years (each time by reducing the nominal value of each bond in the amount of PLN 150). They were issued as unsecured bonds but will ultimately be secured with a joint mortgage established by the capital group’s entities on selected real estate properties.
Ronson Development has been an active, credible issuer of corporate bonds since 2011. As at the end of September 2018, total nominal value of Ronson’s outstanding bonds amounted to PLN 220 million. Since then, the Company has redeemed L-series bonds with total nominal value of PLN 15 million (in December 2018) and I-series bonds with total nominal value of PLN 10 million (in January 2019). The redemption of the remaining series of bonds will be spread evenly over the years 2019-2022. Most of the bonds issued by Ronson are listed on the Catalyst trading platform.
Michael / Ström Brokerage House acted as an offering entity in the placement process of U-series bonds.