TEILOR Holding raises 22 million lei from BVB investors in a new bond issuance

Bucharest, 25 October 2024 – TEILOR Holding S.A., a group that encompasses the TEILOR luxury jewelry stores and the diversified financial services and retail brand MoneyGold, has successfully completed its second corporate bond issuance, raising a total of 22 million lei from BVB investors – the largest corporate bond issuance of 2024. The capital was secured through two private placements, one in euros and one in lei, conducted between 14-25 October 2024. The placements were managed by Tradeville, with Cornerstone Communications, TEILOR Holding’s Authorized Advisor, and Filip & Company, the Group’s legal counsel, providing support in the transaction.

“We are grateful to all investors for placing their trust in TEILOR Holding’s vision and performance. The Romanian capital market continues to provide valuable opportunities for accelerated growth-oriented companies like ours, and the success of this second private placement underscores the strong recognition of the TEILOR and MoneyGold brands among the local investors. It also affirms our strategic development plans. With the capital raised, we will concentrate on consolidating TEILOR presence locally, expanding the DAAR brand, and enhancing MoneyGold’s presence in the Romanian market. Moving forward, we will prioritize our resources into the areas that show the greatest potential for growth, enabling the Group to deliver top-quality products and services – ranging from TEILOR’s luxury goods and DAAR’s sustainable jewelry to the diversified financial services and retail offered by MoneyGold,” stated Mircea Varga, Chairman of the Board of Directors of TEILOR Holding.

A total of 105 professional and qualified investors participated in the offering. The lei-denominated corporate bonds have a nominal value of 100 lei per bond, a 5-year maturity, and a fixed interest rate of 9.5%, with semi-annual coupon payments. TEILOR Holding anticipates that the 74,160 lei-denominated bonds, with a total value exceeding 7.4 million lei, will be tradable on the AeRO market of the Bucharest Stock Exchange before the end of the year under the symbol TEI29. The euro-denominated bonds have a nominal value of 100 euros per bond, a 5-year maturity, and a fixed interest rate of 8.5%, payable every six months. The 29,275 euro-denominated bonds, totaling 2.9 million euros, will be listed on the AeRO market under the symbol TEI29E at the same time as the lei-denominated bonds.

The offer, which closed on October 25th, 2024, marks TEILOR Holding’s second corporate bond issuance. In December 2021, the company successfully raised 45 million lei through a similar structure, issuing bonds in both lei and euro. These bonds are now traded on the Bucharest Stock Exchange’s AeRO market under the symbols TEI26 and TEI26E.

The 22 million lei raised from investors will be allocated between the Group’s two major segments to support, on one hand, the consolidation of TEILOR SRL’s jewelry store network in key markets and the expansion of the new sustainable luxury brand, DAAR, and on the other hand, the opening of new agencies for the MoneyGold group of companies, providing working capital for these locations and making investments aimed at boosting market share in Romania.

TEILOR Holding, established in 2021, brings together the businesses of Romanian entrepreneurs Florin and Geanina Enache under a single umbrella. The holding company is the sole shareholder of TEILOR SRL, a luxury jewelry chain operating in Romania, Poland, Hungary, and Bulgaria. It also owns Teilor Invest Exchange SRL, a network of exchange offices, Invest Intermed GF IFN SRL, a non-bank financial institution specializing in short-term secured loans, and Invest Intermed Gold, a company selling gold jewellery -all three operating in Romania under the MoneyGold brand.

In 2023, on a consolidated level, TEILOR Holding achieved a turnover of 412.7 million lei, marking an 11% increase compared to 2022, with EBITDA reaching 68.3 million lei, a 27% rise. Net profit stood at 22.4 million lei, reflecting a 108% growth from the previous year, while normalized net profit climbed to 32.4 million lei, an increase of 39%.

In the first half of 2024, TEILOR Holding reported a turnover of 216.3 million lei, a 19% rise compared to the same period last year, driven by increased demand for its products and a broader geographic presence. EBITDA was 27.3 million lei, down 6% from H1 2023, while normalized net profit was 3.2 million lei – a 76% decline due to ongoing investments in network expansion, as TEILOR added 6 new stores and MoneyGold grew by 17 branches over the past year. In the months ahead, the Group will optimize its network, channeling resources into business lines with the highest growth potential.

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About TEILOR

TEILOR is an international chain of luxury jewelry stores with a 25-year tradition. Present in Romania, Poland, Hungary, Bulgaria, and the Czech Republic, TEILOR has over 75 physical stores and a strong online presence through its eCommerce platforms teilor.com, teilor.ro, teilor.hu, teilor.pl, teilor.bg and daar.ro. TEILOR’s collections include gold jewelry as well as diamond and precious stone-encrusted jewelry tailored to customer desires.

About Invest Intermed GF IFN

Operating under the MoneyGold brand, Invest Intermed GF IFN provides financing services in a pledged loan system exclusively for individuals.

About Teilor Invest Exchange

Established in 2012 and operating under the MoneyGold brand, Teilor Invest Exchange focuses on currency exchange and money transfer activities. The company operates through a network of agencies totaling over 110 locations across Romania.

About Invest Intermed Gold

Invest Intermed Gold specializes in the sale of gold jewelry through the MoneyGold agency network, operating under the myGold brand.