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LONDON (Alliance News) - Globalworth Real Estate Investments Ltd on Tuesday said it has entered into a EUR180.0 million financing agreement with investment management organisation Canada Pension Plan Investment Board and asset management firm Cairn Capital Ltd.
Globalworth, a real estate investment company focused on the Romanian market, said it has signed the three-year EUR180.0 million secured bond transaction, which was fully subscribed by both Canada Pension Plan and funds managed by Cairn Capital.
Cairn Capital also acted as arranger for the bond issue.
The proceeds of the bond transaction will go towards refinancing the EUR100.0 million corporate level facility granted by funds managed by financial advisor York Capital LLC and investment firm Oak Hill Advisors LP.
Globalworth said the bond is listed on the Channel Islands Stock Exchange and is secured by four of Globalworth's real estate assets. As a result of the transaction, the weighted average all-in cost of debt financing is reduced to 5.3% from 6.2% on a run-rate basis, the company added.
Completion of the bond is subject to satisfaction of certain conditions which are customary for a facility of this nature, Globalworth added, but said these are expected to be satisfied shortly.
"Securing the support of international real estate investors of the calibre of Canada Pension Plan is a huge endorsement of Globalworth and our position in the Romanian market. We have built a portfolio of properties that we are proud of and will continue to be an active investor where we see value, thus cementing our position as one of the leading real estate investors in the region," said Globalworth Founder and Chief Executive Ionnia Papalekas.
Shares in Globalworth were untraded on Tuesday, having last traded at EUR5.00.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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