In a statement released on the Zagreb Stock Exchange yesterday, Atlantic Grupa announced that they are considering the issuance of new bonds.
In their statement the company did not specify on how much the new issuance might be, but they did note that more information will be released in case the transaction is executed.
However, it is not hard to imagine that the new issuance will be used to refinance the company’s HRK 200m bond which matures in June 2021. The bond was issued back in June 2016 at 3.135% yield with an annual coupon of 3.125% and a semi-annual payment of interest. This would translate to an annual interest expense of HRK 6.4m. At issuance synthetic government yield was 2.635% and bond was issued with 50 bps spread. Considering the current low interest environment it wouldn’t surprise us if Atlantic was able to reach an even lower rate this time, especially when considering that the company is currently operating on the lowest level of indebtedness since the acquisition of Droga Kolinska. One should also add that Atlantic Grupa would certainly be able to pay off the maturing bond with cash held on the balance sheet, but it seems as the company does not want to significantly lower their cash position at the moment. This could imply that the company is looking to collect funds in case any interesting target comes along as it is always looking to increases its growth via acquisition. Also, the company might be looking to improve its capital structure by increasing debt.
Currently, Atlantic Grupa holds a net debt of HRK 756m, which translates to a net debt/EBITDA of 1.1x. Please refer to the chart below to see Atlantic Grupa’s net debt development since 2015.
Atlantic Grupa Historic Net Debt (HRK 000) & Net Debt/EBITDA
Trading statistics for September 2020 show an average daily turnover of EUR 25.27m (+246% YoY).
The Bucharest Stock Exchange published their trading statistics for September 2020, showing an average daily turnover of EUR 25.27m, representing a sharp increase of 246%.
When observing the top traded shares, one can notice that OMV Petrom recorded the highest turnover of RON 662.19m. Banca Transilvania follows with a turnover of RON 625.4m. Next come Electrica with RON 336.9m and Fondul Proprietatea with 304.5m.
Turning our attention to the main index of the BVB, in September, BET witnessed a slight increase of 0.11% ending the month with 9,007.20 points. As of end September, BET is still down 9.7% compared to the beginning of the year.
It is worth adding that in September, for the first time in history, the Romanian capital market is included in the Emerging Markets indices, according to the classification of the global index provider FTSE Russell.
Starting from 21 September Romania was included in the Emerging Markets indices according to the classification made by FTSE Russell, and this event was possible after the global index provider announced in September 2019 that Romania would be promoted to the Secondary Emerging Market status from the Frontier Market status. Note that the decision came after Romania had been retained on the Watch List for three consecutive years.
Two Romanian companies, Banca Transilvania (TLV) and Nuclearelectrica (SNN) have met the necessary criteria to be included, starting from 21 September, in the All-Cap indices dedicated to Emerging Markets according to the classification of the global index provider FTSE Russell.
Coming back to the BET index, 6 of 17 index constituents ended the month in green, with Teraplast leading the list (+12%). BRD follows with an increase of 8.3%. On the flip side, Digi and Alro lead the losers with -8.5% and 8.4%, respectively.
Share Price Performance of BET Constituents in September (%)
In September, the Belgrade Stock Exchange observed a very low average daily turnover of EUR 0.05m. Meanwhile, BELEX15 recorded a slight decrease of -0.13%.
The Belgrade Stock Exchange reported a turnover of EUR 1.06m in September 2020 (when observing solely equity). This would translate to very low average daily turnover of EUR 48.1k.
In September, the most traded share (excluding block transactions) was NIS with a turnover of EUR 0.32m. Next come Komercijalna Banka with EUR 0.14m and Energoprojekt holding with EUR 57.3k.
BELEX15 observed a slight decrease of 0.13% (ending the month at 692.93 points), representing the 4th time that the index ended the month in red in 2020. As of end September, BELEX15 is still down 13.6% YTD. Of the index constituents, Komercijalna Banka (pref.) observed the highest share price increase of 10%. Next comes Fintel Energija, the newest addition to the index, with an increase of 2.5%. As a reminder, Belgrade Stock Exchange Index Committee decided to change the index components in the index basket of BELEX15. The Index Committee included Fintel energija (Ticker: FINT) and Dunav Osiguranje (DNOS) in the index, which became effective as of 30 September 2020.
Of the index constituents, Impol Seval leads the losers with -2.7%.