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The first bond issue of Restart Energy One started trading on Bucharest Stock Exchange
The first bond issue of the electricity and natural gas supplier Restart Energy One started trading today under ticker REO26
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These are the first bonds convertible to shares listed on Bucharest Stock Exchange’s Multilateral Trading System
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The funds raised through the private placement will be used for the development and acquisition of renewable energy production assets
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It is the 9th corporate bond issue listed this year, along with six new companies that were listed with shares and three government bond issues
The electricity and natural gas supplier Restart Energy One listed today, April 21, its first issue of corporate bonds on Bucharest Stock Exchange (BVB), under the ticker REO26. These are the first bonds convertible to shares listed on BVB’s Multilateral Trading System (MTS). The funds raised at the beginning of this year through a private placement will be used for the development and acquisition of renewable energy production assets.
"Bucharest Stock Exchange is here to support the development plans of companies in the energy sector, as well as in other essential areas of the Romanian economy. The stock market is the right place for visionary teams and companies with growth plans, for which they need financial resources. The success of this bond issue and of the other issues that began trading in the last two and a half year shows the openness and capacity of the local capital market to support Romanian businesses, in different fields", said Radu Hanga, President of Bucharest Stock Exchange.
Restart Energy One (REO) is an independent electricity and natural gas supplier, with 100% Romanian capital, established in 2015 in Timisoara. The company has operations in Romania and Serbia and, starting with this year, aims to develop in several European markets, including Germany and Spain. REO has become in a few years since its establishment the number one independent supplier on the market of domestic gas consumers in Romania, according to the number of consumption places, respectively the second one in the independent electricity suppliers top for domestic consumers, according to the same criteria. The main clients are small and medium consumers of electricity and natural gas, domestic and non-domestic, including households, small and medium enterprises, micro-enterprises, as well as industrial customers.
"For Restart Energy One, the investors trust in subscribing to our first bond issue is honorable and confirms the healthy direction in which the company is heading. Today, by listing these bonds, we conclude a first chapter of our entry into the capital market. The company's future plans include a much stronger presence on Bucharest Stock Exchange, which we see as a strong partner, which will support us in executing our business strategy, both nationally and regionally”, said Armand Domuta, CEO of Restart Energy One.
The company provides an annual volume of approximately 145,000 MWh, less than 1% of the total volume distributed on the Romanian market. Energy is purchased from the internal and external market. Starting with 2020, Restart Energy One has refocused on the production of renewable electricity through the development and operation of its own production units, mainly solar parks.
The company aims to develop and integrate the upstream segment of the company with 500 MW renewable energy projects by the end of 2025. The company intends to buy or develop 100 MW projects annually, including solar, wind, biogas, biomass and geothermal energy. The first stage in achieving this goal involves the development of 45 MW and the acquisition of 30 MW operational. The bonds come to support this goal, along with bank loans and resources attracted from the private equity area.
The bond issue has a total value of RON 16.36mn and includes 163,612 bonds, with a nominal value of RON 100/bond, 5-yrs maturity and an interest rate of 9% p.a., payable half-annually. The bonds are convertible starting with 2024 and can be early buy-backed starting with the third year of the bond issue. The company carried out a private placement in February 2021 with the support of Goldring, the Authorized Advisor who also assisted the listing of the bond issue on BVB’s MTS.
"It is time for green energy to be more present among the investment opportunities at BVB, and for investors to be able to include ESG criteria in the building their investment portfolios. Restart Energy One has shown that it has a vision and knows how to turn capital into economic profitability but also into added value for the environment. In the context of energy efficiency and green energy projects that will be intensively supported in the coming years by the European Green Pact, which will allocate EUR 1 trillion to such programs, the outlook for this sector is more than promising. We are pleased that we have mediated the launch of the first convertible bonds on the MTS, we are delighted that the funds raised are for green energy and we look forward to listing the shares of Restart Energy One”, said Virgil Zahan, CEO Goldring.
Restart Energy One registered in 2019 a turnover of RON 128.5mn, an increase of 46.37% compared to 2018. In 2019 the revenues from electricity supply represented 65%, 16% are revenues from the supply of natural gas, 18% revenues from the energy trading activity and 1% other revenues. In Q4 2020, the number of electricity consumption places increased by 11.2%, compared to the previous quarter, respectively by 3000 places.