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August 15, 2022
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TEILOR Holding announces intention to issue 45 million lei corporate bonds on AeRO market

TEILOR Holding S.A., a group of companies that includes the chain of luxury jewelry stores TEILOR, Teilor Invest Exchange and financial lending company Invest Intermed GF IFN, announces its intention regarding the first operation on the Romanian capital market. Before the yearend, TEILOR Holding will carry out a private placement for corporate bonds with an estimated value of 45 million lei.

We have been following the recent evolution of the Romanian capital market, and we are thrilled about integrating financing through the Bucharest Stock Exchange into the business development strategy of TEILOR Holding. Throughout the years, our strategy has always been to capitalize profits to continue the sustainable development of our group, supported by bank financing. Today, we find ourselves at a defining moment for our business when we can accelerate the speed at which we develop and significantly increase our footprint in Romania and across Europe. We are a robust, well-capitalized pan-European group of companies, with strong brand notoriety and ambitious development plans, and we are confident that with the support of BVB investors, we will be able to continue our development at an accelerated pace, said Florin Enache, Chairman of the Board and founder of TEILOR Holding.

TEILOR Holding is an entity established in 2021, uniting under one umbrella all businesses of Rumanian entrepreneurs Florin and Geanina Enache. The holding company has a share capital of 350.5 million lei and it is the sole shareholder in TEILOR SRL, a chain of luxury jewelry stores present in Romania, Poland, Hungary and Bulgaria, Teilor Invest Exchange SRL, a network of exchange offices, and Invest Intermed GF IFN SRL, a non-bank financial institution which carries out short-term financial lending activity with a pledge, with the last two companies operating together under the MoneyGold brand. The Holding is controlled by Florin Enache and Geanina Enache in proportion 93.1% and 6.9%, respectively. As of June 30th, companies that are part of TEILOR Holding had 497 employees in Romania and abroad.

In 2020, the three companies generated a combined turnover of 192.2 million lei, EBITDA of 41.1 million lei and a net profit of 30.6 million lei. Between 2018 and 2020, the combined turnover increased 35.5% due to the expansion and development strategy implemented at the level of all three companies. Despite the COVID-19 pandemic and its impact on the operations of brick-and-mortar stores and agencies, the company managed to increase turnover compared to 2019 by 3% and grew the net profit margin by two percentage points. In the first six months of 2021, the companies from Teilor Holding registered a combined turnover of 121.4 million lei, an 84% surge compared to the first half of 2020. The EBITDA in the first half of 2021 reached 21.4 million lei while the net profit amounted to 13.8 million lei.

The capital raised from investors will be divided between the three businesses and will be used for the accelerated development. More than half of the capital raised by TEILOR Holding will be directed to TEILOR SRL and will be used for the expansion of the jewelry store network across Romania and Europe, as well as investments in the eCommerce platform. Approximately 18% of the capital will be directed to Invest Intermed GF IFN, to open new agencies and provide the working capital for these locations, as well as investments that will accelerate the increase of the market share in Romania. The rest of the funds, approximately 27% of the corporate bonds issuance, will be directed to Teilor Invest Exchange and will be primarily used to finance the development of the network of agencies across Romania and the necessary working capital.

“All the companies that are part of TEILOR Holding had solid performance over the last three years, registering double-digit growth between 2018 and 2020. The COVID-19 pandemic did not have a negative impact on our businesses, quite the opposite – it provided us with an excellent opportunity to revise our plans for future and seek alternative financing sources that will help us accelerate our development. We have identified capital markets as the most flexible financing solution at this stage, and we are excited about our intention regarding the first operation on the Bucharest Stock Exchange – an approximately 45 million lei corporate bonds issuance. There is a significant potential for growth in the future, with TEILOR targeting a Compound Annual Growth Rate between 2021 and 2026 of 27%, Teilor Invest Exchange of 34% and Invest Intermed GF IFN of 22%, which in turn will lead to estimated turnover of 1 billion lei at the end of 2026. Therefore, we do not exclude further operations on the local stock market,” said Mircea Varga, Board Member at TEILOR Holding.

The corporate bonds offer may have two tranches – EUR and RON to better serve the development of the holding company and the demand from the investors. The bonds will have a maturity of five years, and the interest rate will be established in the private placement. Following the placement, the intention is to list the bonds on the SMT – AeRO market of the Bucharest Stock Exchange. BT Capital Partners will intermediate the offer, while Cornerstone Communications will be TEILOR Holding’s Authorized Advisor.

 

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