Avicola Bucharest to sell bonds for 2m euros

Avicola Bucharest is to run a public offering during which it will sell 78bn ROL (2.1 million euros) in bonds. Avicola intends to sell 3.12 million bonds with a par value of 25,000 ROL. They did not specify the interest rate or the maturity for the issue. The bonds will be convertible into shares and available for subscription for a period of 90 days from the publication of the offering, with unsold bonds to be cancelled. The bond issue will generate the necessary cash to upgrade production facilities in order to be compliant with requirements and standards set by the EU for poultry farming. The company also plans to upgrade the technology used in its production to a competitive level so as to match level in EU countries. Avicola Bucharest’s majority shareholder is SIF Muntenia with a stake of 98.2%. ZF