Dekpol announced on March 20, 2024, that they have decided to initiate a bond issue program with a total nominal value of up to 400 million PLN. The final issuance within the program can be carried out no later than December 31, 2026.
According to the board's decision, the bonds will be unsecured, have either a fixed or variable interest rate, and payments from the bonds will only be in cash. They also plan to introduce the bonds to the alternative trading system organized by the Warsaw Stock Exchange within the Catalyst market.
The issuances of the different bond series will be conducted according to separate board decisions that specify the exact parameters for each issue. The company has the right to conduct multiple issuances within the program up to a total outstanding nominal bond value of 400 million PLN.
Looking at the bonds currently issued and listed on Catalyst, all are trading just above par and have interest rates around 11%. They are also in sizes of 10-40 mpln, which provides a good diversification in the debt portfolio both in terms of size and maturity.
Wibor has decreased somewhat since most of the previous bonds were issued. Moreover, the company's financial position is stronger than ever. Thus, future refinancing may marginally lower the company's interest costs.
However, what may be particularly interesting is whether the company plans to go on the offensive with new capital. According to the latest report, however, 174 mpln of the interest-bearing debts were short-term, so it is highly likely that at least some portion of the upcoming bond issuances will be for refinancing purposes.
Next on the schedule is the annual report for 2023 on April 26.
(Disclaimer: at the time of publication, the writer owns shares in the mentioned company)
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