EBRD backs landmark bond issued by Romanian real estate investor

By Olga Rosca
@olgarosca

EBRD backs landmark bond issued by Romanian real estate investor

Fresh boost for development of Romania’s capital markets

In a fresh boost to Romania’s capital markets, the EBRD has invested €50 million in a €550 million bond issued by Globalworth Real Estate Investments, a real estate investment company focused on the Romanian market.

Globalworth is the largest office-property owner and developer in Romania, investing in a diversified portfolio of properties located primarily in Romania, but also in the broader south-eastern European (SEE) region and in central and eastern Europe (CEE). Its shares are listed on the Alternative Investment Market (AIM), the London Stock Exchange’s international market for growing companies.

Globalworth has issued bonds to consolidate its funding sources and pursue expansion plans in and outside Romania. This is the largest publicly traded bond issued by Globalworth, the first corporate Eurobond to be dually listed on the Irish Stock Exchange and the Bucharest Stock Exchange and the first Romanian corporate bond to reach a benchmark size of at least €500 million that would facilitate the bond’s inclusion in global indices, attracting more liquidity and visibility.

Matteo Patrone, EBRD Director, Regional Head for Romania and Bulgaria, said: “By investing in this landmark issuance, the EBRD is demonstrating its strong support for the development of Romania’s capital markets. Globalworth sets an example of how local companies seeking finance can tap into debt capital markets. We are also pleased with Globalworth’s commitment to building a green and more environmentally friendly portfolio.”

Globalworth currently holds nine properties – most of its portfolio – that have received internationally accredited green certification such as Leadership in Energy and Environmental Design (LEED) or the BRE Environmental Assessment Method (BREEAM). The company is committed to expanding the green certification across its entire portfolio.

Dimitris Raptis, Deputy CEO and Chief Investment Officer at Globalworth said: “The fact that a leading institutional investor such as the EBRD has placed its trust in our strategy is one of the most important recognitions Globalworth has received so far. This validates our business approach and it can only encourage us to continue developing further. In terms of priorities, we will focus on further consolidating our leading position in Romania and pursuing a sustained strategy for expanding our real-estate investments in other CEE countries, with a main focus on Poland. We are also committed to achieving our objectives in a manner that will have a positive impact on our community, with a particular focus on maintaining our environmentally friendly portfolio.”

The EBRD is a leading institutional investor in Romania and developing Romania’s capital markets is among its priorities. The EBRD focuses on promoting stability and expanding products in the financial sector, on strengthening infrastructure through improved efficiency and greater private sector involvement, as well as on restructuring the power sector and increasing energy efficiency and sustainability. 

The Bank has invested close to €7.5 billion in the country to date in almost 400 projects.