The bonds C&V Water Control (CVW18), the first corporate bonds issue listed on Bucharest Stock Exchange (BVB) Alternative Trading System (ATS) bonds market segment, debuted on the stock market on Thursday, July 16, 2015.
The moment was market by an official opening of the Thursday trading session ceremony, in the presence of the company’s representatives and of BVB Chairman of the Board.
"In order to move to a higher stage of our evolution, the moment came when we realized that all by ourselves we cannot carry on what we wanted, namely building a strong local brand in an area with a intensive need for capital, but only by attracting financial partners. So came the first idea of issuing bonds, an idea built together with our broker, Broker Cluj. We believe that this first issue sets the premises for attracting new private partners, and even investment funds, in our future development and, why not, even listing the company's shares when it will be ready", stated Catalin Valentin Negoita, C&V Water Control CEO and major shareholder.
C&V Water Control finalized in April 23, 2015 a bonds selling offering through a private placement in which they were sold 1,900 bonds in total value of RON 1.9mn. The bonds have a 3yr maturity and a fixed interest rate of 12%p.a., payable quarterly. The funds raised by the company are needed to support working capital. The bonds were bought by 15 investors, of which 14 were individual investors and one corporate investor.
SSIF Broker (BRK) is the Authorized Advisor which assisted C&V Water Control in the private placement and listing of the bonds.
BVB Chairman of the Board, Lucian Anghel, mentioned that one of the ATS main advantages is that companies can raise funding through a private placement, which doesn’t requires preparing a prospectus, like is required on the Main Market and with low costs.
“A company present on the stock market can promote itself easier and it has a better visibility. Being listed on the stock market is a marketing tool with low costs and it should be used by more companies from Romania. BVB is offering Romanian entrepreneurs this opportunity and I believe that slowly they will discover and take advantage of this opportunity, so they can attract financing for development and for creating new jobs. We are glad to have this premiere and we are convinced that C&V Water Control is the first company from a long line of companies that will follow”, also stated BVB Chairman.
The CEO Catalin Valentin Negoita owns 99.9% of the company’s shares, and the rest of 0.1% is owned by Csilla Negoita.
C&V Water Control focuses on the development and commercialization of equipment and technology for treatment of drinking water and wastewater in residential, commercial, industrial and municipal applications. From market research conducted, C&V Water Control ranks 3rd in terms of production of wastewater treatment and drinking water, a position which is the result of efforts made by the company over time.
C&V Water Control registered last year a turnover of RON 9mn (EUR 2mn), 11% lower than in 2013, but for this year the company forecasts a turnover of RON 22.4mn.
[from left to right: Anca Dumitru (BVB), Iuliana Istoc (C&V Water Control), Catalin Valentin Negoita (C&V Water Control), Catalin Nae-Serban (SSIF Broker), Lucian Anghel (BVB)]
