New Vivre Deco bonds worth EUR 7mn started trading on the Bucharest Stock Exchange

7/14/2021

  • Vivre Deco second bond issue, one of the largest online retailers of furniture and decorations in Central and Eastern Europe, started trading today under the ticker VIV26E.
  • Vivre Deco carried out a private placement for bonds in April 2021 and attracted from the capital market investors the necessary funds to increase its market share and for investments in technology and automation.
  • In total, the company attracted EUR 10.45mn through two private placements, both bond issues being listed on Bucharest Stock Exchange.

 

Vivre Deco, one of the largest online retailers of furniture and decorations in Central and Eastern Europe, listed on Bucharest Stock Exchange (BVB) its second bond issue, worth almost double than the first one. The second bond issue, worth EUR 7mn, started trading on Wednesday, July 14th, on BVB’s Multilateral Trading System, under the ticker VIV26E. The capital attracted from the capital market investors will be used to increase the company’s market share and for investments in technology and automation. In total, the company attracted from the capital market, through two bond issues, starting with March 2020, a total amount of EUR 10.45mn.

‘We are glad that the Romanian capital market supports Vivre Deco's growth plans, both in Romania and in other European countries where the company is active. Last year, in April 2020, Vivre Deco listed its first bond issue, in a period full of uncertainties. The listing of the second bond issue, almost double than the first one, shows the interest and trust that investors have in the company and the Vivre team and, at the same time, the company's willingness to diversify its funding sources, successfully using the capital market financing mechanisms in this regard’, stated Radu Hanga, Bucharest Stock Exchange President.

‘Being a public company, a status that we have obtained with the bonds listing, and the trust that investors have given us in the last two years determine us to grow in the coming years at an even faster pace, but sustainable. The future is about personalizing our customer experience, adapted to their needs, and technology is the main lever that will allow us to customize digital interactions indefinitely, without physical limitations. We want to gradually become the most important marketplace in the Home & Deco category in the region we belong to. This approach requires capital, effort, and significant resources at all levels, but we are ready to innovate and do everything in our power to achieve our goals’, said Monica Cadogan, Vivre Deco Co-founder and CEO.

The company carried out in April 2021 a private placement of bonds, attracting funds worth EUR 7mn needed for the company’s development. The bond issue includes 14,000 bonds with a nominal value of EUR 500/bond and an interest rate of 5.5% p.a., payable on half-yearly basis, with the maturity on April 21st, 2026. During the private placement 89 investors subscribed to the offer (4 Romanian legal entities, 76 retail investors and 4 foreign retail investors). The private placement and the listing were carried out with the support of TradeVille as Authorized Advisor.  

‘As of today, Bucharest Stock Exchange offers us a fresh decor with the listing of the latest Vivre Deco bonds. After another debut that happened the other day on our stock exchange, we could say that this week is dedicated to homes. Whether it is about housing construction or their decoration, investors on the Bucharest Stock Exchange now have an easy and diversified access to new tools for capturing the opportunities offered by either of these two areas’, mentioned Ovidiu-George Dumitrescu, CFA, TradeVille Deputy CEO.

The first Vivre Deco bond issue, worth EUR 3,45mn, is tradeable starting with April 10th, 2020, under the ticker VIV25E. The company does not exclude to use again the capital market for financing in the period 2021-2025.

Vivre Deco was founded in 2012 in Romania, and in 2013 began a process of regional expansion, reaching in 2019 to nine countries: Romania, Bulgaria, Hungary, Poland, Croatia, Slovakia, Slovenia, Czech Republic, Greece. Currently, Vivre is one of the main retailers of Home & Deco products in the markets in which it operates, the sales channel being exclusively online. According to the market analyzes performed by the issuer, Vivre is among the first five most important players in the main markets in which it operates, Romania, Bulgaria, Hungary and Croatia.

The company ended 2020 with a net turnover of RON 295.2mn, an increase of 50% compared to the previous year (2019: RON 196.8mn). According to the company, the increase was determined both by the higher demand from existing and new customers, and by the increasing interest in the online shopping in general. The net profit increased from RON 3mn in 2019 to RON 7.4mn in 2020. The increase in profitability took place due to scale economies and higher volumes. In the short and medium term, Vivre Deco aims to reinvest its net profit to increase its market share and improve the buying experience of existing customers. The company’s management doesn’t estimate to pay dividends in the short and medium term.

At the end of last year, the average number of employees at a group level (Vivre Deco and Technologies by Vivre) was 279. The company's shareholders are Neogen SA with 50%, Advisory Delta with 45% and Nagy Vajda Andras Peter (Technical Director at Vivre) with 5%.