Impact releases bond issue

Real estate developer Impact Bucharest will release a bond issue in February, which it hopes will help it raise 49.8bn ROL ($1.5 million) from the capital market. The par value of each bond will be one million ROL, with the issue set to mature in two years. The company will have the right, though not the obligation to repurchase the bonds as early as one year from the issue date. The purpose of the issue is to raise enough cash to partially fund the company’s Constanta-based real estate development projects. The investments in this city are estimated to reach $12 million. The interest will be paid every six months and set according to the six-month LIBOR (London interbank market interest for attracted deposits), plus four percentage points. Both the interests and the rest of the money paid on the due date will be calculated according to the ROL/USD exchange rate. ZF