Ansett Logistics lists its first bonds on the Bucharest Stock Exchange

9/15/2021

Ansett Logistics, rail freight carrier having over 15-year experience, comes to the Bucharest Stock Exchange with its first bonds, worth half million euro. The bonds have started trading today, 15th September, on the Multilateral Trading System under the ANS26E ticker. The funds attracted from capital market investors are intended to complete the purchase of 125 wagons for the transportation of raw materials in the cement industry and to increase the working capital needed for the rail transportation activity.

The dynamics for this year, both in terms of listing new companies and in terms of fundraising by means of corporate bonds show the potential of the capital market. Since the beginning of the year, 22 corporate bond issues and 6 government securities issues were listed in the stock exchange on both markets, with a combined value of over EUR 1bn. We are pleased that Ansett Logistics is bringing a new area of business, rail freight, to the attention of investors through listing their company bonds’, said Radu Hanga, President of the Bucharest Stock Exchange.

‘The rail freight transportation is constantly in need of investment through the purchase of wagons to provide efficient logistics solutions for our customers. We thank Bucharest Stock Exchange for offering us the opportunity to finance ourselves through the capital market, says Nicolae Alexandru, Ansett Logistics CEO.

In a private placement of bonds that took place in April this year, the company sold 5,000 guaranteed corporate bonds, inconvertible, de-materialized, having a nominal value of EUR 100. Ansett Logistics attracted the total amount of EUR 500,000 from 29 investors. The bonds have the maturity date on April 29, 2026, and an annual fixed coupon rate of 8%, payable quarterly. The private bond placement and the listing were made with support from BRK Financial Group.

This 15 September is more special, as the bell signifies the opening of the fall season for the listings we have been working on lately. By listing the bonds issued by Ansett Logistics, we offer the opportunity to invest in one of the strategic sectors of the economy, which is, however, under-represented on the BVB, and we mean transportations. In our view, the Ansett Logistics project has all the ingredients for success: the bonds offer a coupon that was found to be very attractive by the investors who participated in the private placement, and at the same time, the issue is guaranteed with a batch of over 40 wagons, valued at over EUR 700,000 - practically 140% coverage with guarantees”, said Monica Ivan, BRK Financial Group CEO.

Ansett Logistics was set up in 2005 and is a rail freight carrier, operating throughout Europe. In 2020, the company turnover was RON 41.1mn, with a slight decrease as compared to 2019 (RON 44.3mn). In 2020, the profit registered by the company was RON 688,190, with a decrease as compared to 2019, the year when the profit was RON 1.02mn.

Three-quarters of last year’s turnover came from services provided for companies in the cement industry, rail transportation of clinker, coal, gypsum, coke, slag or mineral aggregates respectively. According to the Memorandum, grain transportation is also an important category in the revenue structure, particularly as a result of the company's establishment in 2013 Ansett Rail GmbH, headquartered in Vienna. The division in Austria boosted the grain transport segment, the most profitable component from a margin point of view, initially with a fleet under management of 35 wagons, reaching the management of 400 wagons, depending on customers’ demands.

In the first half of this year, Ansett Logistics transported almost 300,000 tons of raw materials and materials, using its own 175 wagons, 82 leased wagons and over 300 wagons in the CFR Marfa network. By the end of this year, the company estimates that it will rent another 70 wagons specialized in cement transport. For the end of this year, Ansett Logistics expects a turnover of RON 44.3mn and for 2022 a turnover of RON 50.1mn. The company has 23 employees.