Bulgaria's GDP growth to speed up in 2019 on fiscal stimulus – UniCredit Bulgaria's economic growth is expected to speed up from 3.5% last year to 3.9% in 2019 on the back of moderate fiscal stimulus and acceleration of investment activity, Italian financial group UniCredit said "Among the planned measures, the boost in infrastructure spending and the increase in public sector wages are expected to be the most effective in supporting domestic demand in 2019," UniCredit said in a quarterly macroeconomic report on Central and Eastern Europe. Bulgaria's gross domestic product growth is then expected to slow down to 3.0% in 2020 as a result of the cyclical downturn anticipated in advanced economies and tighter financing conditions. A sharp drop in export volumes to Turkey was among the major hurdles to Bulgaria's economic expansion in 2018. The forecast acceleration of the Turkish economy in the next few years is expected to limit the decrease in Bulgaria's exports to the country in 2019, before they start increasing in 2020. As Bulgaria's unemployment rate is projected to drop below 5% this year, job creation is expected to lose some momentum.
Source: Other (10.01.2019)

Bankers point Bulgaria among the countries with the most stable economic growth in 2019 Economic growth in Central and Eastern Europe (CEE) promises to maintain its steady rhythm this year. Consumption, foreign direct investment, European funds and digital transformation will be the key factors for growth in the region. These are the forecasts of the participants in the annual Euromoney 2019 economic forum, quoted by Unicredit. According to forecasts, Bulgaria, Slovakia and Hungary will show the strongest GDP growth for the region. GDP growth is projected to remain stable in most countries (around 3% or higher), albeit with some cyclical declines. Following the cyclical peak reached in 2017 (4.6% with the exception of Russia and Turkey) and average GDP growth of 3.7% in 2018, the region's economic growth is expected to remain above the potential for 2019 (around 3.2% on average), but may slow down in 2020 as a result of potentially weaker global trade.
Source: Dnevnik (17.01.2019)

Samsung closes sale of PV portfolio in Bulgaria - RBI South Korea's Samsung has concluded the sale of its 43 MWp PV portfolio in Bulgaria to Germany's KGAL and Czechia-based Portanero Invest in what is the largest deal for operational solar plants in Bulgaria to date. The transaction was officially closed on January 7, Raiffeisen Bank International (RBI), which acted as financial sell-side adviser to Samsung, said. KGAL ESPF 4 Holding, the investment arm of KGAL, together with Portanero Invest, a company related to Czechia-based Micronix Group, have agreed to acquire from Samsung C&T Corporation its Bulgarian PV portfolio consisting of seven solar power plants for an undisclosed price, RBI said. The acquired PV portfolio consists of the managing companies of two solar power plants located close to Vratsa, in north-western Bulgaria, of 15 MWp and 10 MWp each, three solar power plants of 4 MWp each and one of 2 MWp located close to the village of Letnitsa, in north-central Bulgaria, and a 4 MWp solar power plant located close to the village of Veselinovo, in in north-central Bulgaria.
Source: Capital (21.01.2019)

Bravo Property Fund REIT-Sofia (BPY) The Board of Directors of Bravo Property Fund REIT adopted on 22 January 2019 a preliminary decision for issuance of bonds, defining the initial terms and conditions of the bond loan as follow: - Type: First issue of ordinary, dematerialised, secured, non-convertible, freely transferable and interest-bearing bonds - Total nominal and issuing value of the bond issue: BGN 30,000,000 - Nominal and issuing value per bond: BGN 1,000 - Term of the bond loan: Five (5) years - Annual interest rate: Up to 4%, payable every three (3) months as of the date of loan issuance - The bond loan will be considered concluded at the subscription and payment of 30,000 bonds. - Bonds will be offered under private placement. It is required the bonds to be to be admitted to trading on the BSE within six (6) months of their issuance, after the FSC approves their prospectus. - UniCredit Bulbank AD is the selected investment intermediary in charge of the offering of bonds.
Source: BSE (24.01.2019)

Synthetica AD-Sofia (EHN) The extraordinary General Meeting of Shareholders of Synthetica AD dated 14 December 2018 has passed the following resolutions: - Adoption of a decision to authorise the Board of Directors and the representatives of Synthetica AD to conclude a transaction as a result of which an obligation under Art. 114 (1), item 2 of the POSA is arising for the Company, in compliance with a justification report, namely: arising an obligation for Synthetica AD for the purpose of redemption of a liability under a bank investment credit contract signed between and by UniCredit Bulbank AD and Vaptsarov Business Centre EOOD (UIC 175059768) - Adoption of a decision to authorise the Board of Directors and the representatives of Synthetica AD to conclude a transaction as a result of which a receivable under Art. 114 (1), item 3 of the POSA is arising for the Company, in compliance with a justification report, namely: arising a receivable for Synthetica AD in result of repayment of a liability under a bank investment credit contract signed between and by UniCredit Bulbank AD and Vaptsarov Business Centre EOOD (UIC 175059768)
Source: BSE (31.01.2019)

With regard to a request filed by UniCredit Bulbank Investment Intermediary, BSE withholds the rights of Boyan Vasilev granting him access to the BSE Trading System as of 31 January 2019. With regard to a request filed by United Bulgarian Bank Investment Intermediary, BSE withholds the rights of Vanya Mladzheva granting her access to the BSE Trading System as of 31 January 2019.
Source: BSE (31.01.2019)

With reference to a decision of the Board of Directors of Bravo Property Fund REIT-Sofia (BPY) taken on 20 December 2018 for an increase in capital of the company and to the subsequent announcement pursuant to Art. 92a of the POSA made on 13 February 2019 via the chosen information agency Investor.BG (www.investor.bg) and the website of the issuer (www.bpf.bg) as well as via the website of the authorised investment intermediary (www.unicreditbulbank.bg), please, be informed that the following issue of rights has been admitted to trading on the Subscription Rights Segment of the BSE Main Market by an order of the Director of Trading on the grounds of Art. 32 (2) in conjunction with (1) of Part III - Listing Rules of the BSE Rules and Regulations: - Number of shares prior to the increase: 650,000 - Number of rights issued: 650,000 - Number of shares offered for subscription: 36,400,000 - Nominal value per share: BGN 1.00 - Issuing value per share: BGN 1.00 - Ratio between the rights issued and new shares: 1/56 (right/shares) - Everyone may subscribe to such number of shares equal to the number of acquired and/or held rights multiplied by 56. - The capital will be increased if at least 36,000,000 new shares will be subscribed to and paid in. - BSE code assigned to the rights issued: BPYB - ISIN of the rights issued: BG4000005190 - LEI code of the issuer: 8945005OB6T0BWUV7595 - Trading lot: One (1) right - Currency of trading: BGN - Minimum tick size: 0.001 - Indicative reference price set for the first trading session: BGN 0.029; In case of a change before the first date of trading, the new reference price will be duly disclosed. - Starting date of trading in rights on the Exchange: 01 March 2019 - Final date of trading in rights on the Exchange: 14 March 2019 - Starting date of transferring the rights: 01 March 2019 - Final date of transferring the rights: 18 March 2019 - Auction date as per Art. 112b (7) of the POSA: 25 March 2019 - Starting date of subscribing to shares of the increase: 01 March 2019 - Final date of subscribing to shares of the increase: 09 April 2019 - Investment intermediary authorised to administer the capital increase: UniCredit Bulbank AD - Bank with which an accumulation account will be opened: United Bulgarian Bank AD - The right to participate in the capital increase shall be entitled to all persons who have acquired shares not later than seven (7) days following the date of publication of the public offering notice in pursuance of Art. 92a (1) of the POSA i.e. by Wednesday, 20 February 2019 (Record Date). - The final date for transacting shares of this company on the Exchange, as a result of which the holder will be entitled to take part in the capital increase, will be Monday, 18 February 2019 (Ex Date: 19 February 2019).
Source: BSE (21.02.2019)

Unicredit Bulbank requested insolvency of Sparky Eltos and related companies After several years of loss, which was funded by the state-owned Bulgarian Development Bank (BDB), the Lovech-based manufacturer of power tools Sparky Eltos faces claims for insolvency proceedings, which have been filed by UniCredit Bulbank. This includes also the Rousse-based machine-building factory Sparky, as well as their direct owner Sparky group. Practically their largest creditor is BDB. According to data published by the company by the end of 2017, long-term bank loans to Sparky Eltos amounted to BGN 31.1 million and short-term (up to 12 months) reached BGN 50.6 million. A year later - at the end of 2018, the current liabilities on bank loans amounted to a total of BGN 51.6 million, but there is no detailed information on creditors. According to the report for 2017, the short-term liabilities to Unicredit Bulbank amount to BGN 6.5 million and the deadline for their payment is the beginning of 2018. The company also has long-term liabilities to the bank at the amount of BGN 14.8 million. Debts to the BDB amount to BGN 37 million, which had to be paid by the end of September last year. The company also has to repay about BGN 17 million in total on a syndicated loan granted by the BDB and the International Investment Bank in 2015, but the term is longer (10 years).
Source: Capital (12.03.2019)

Banks sold bad loans for over BGN 1.5 billion in 2018 The banks in Bulgaria have taken a serious cleanup of their portfolios of bad loans in 2018. Only for a year they have releaved themselves from troubled loans for EUR 0.8 billion (about BGN 1.56 billion), reads the Deloitte report for non-performing bank loans in Central and Eastern Europe. In total, two deals marked the sale of bad loans in 2018 in Bulgaria - the sale of EUR 250 million (nearly BGN 500 million) of secured and unsecured non-performing loans to individuals and companies from UniCredit Bulbank, as well as the UBB deal with EOS Matrix for a portfolio of EUR 235 million (BGN 460 million) of problem loans. Between 2015 and 2018, the sale of non-performing debts in Bulgaria amounts to about EUR 1.5 billion (BGN 2.93 billion), the Deloitte report shows. The sale of problem loans is part of the banking sector strategy in Bulgaria to reduce the share of non-performing loans, promoted by the BNB and required by the European Commission. The reason is that, according to statistics in the EU, only four troubled states have a higher share of non-performing loans compared to Bulgaria according to data from 2017.
Source: 24 chasa (12.03.2019)

Unicredit Bulbank will pay the record dividend of BGN 430 million Unicredit Bulbank prepares to pay all its BGN 430 million profit for 2018 as a dividend. This became clear from the invitation for a general meeting of shareholders of the largest bank in the country, scheduled for 9 April. The enormous amount will go to Unicredit S.p.A, which owns 99.45% of the capital. However, there are more than BGN 1.5 million shares in minority shareholders. Thus UniCredit Bulbank consolidates its policy of the last few years to distribute all its profits. This also happened with the result for 2017 and 2016, and for 2015 the bank gave out 1/2 of the profit, and in 2014 it was 1/3. In the years before, banks have capitalized their profits on a BNB prescription to build up buffers due to the high share of non-performing loans due to the global crisis. Unicredit Bulbank's own 2018 earnings are record for it, but it also includes about BGN 115 million from dividends from its subsidiaries for consumer loans and leasing. Compared to 2017, the bank's earnings surge by 44.5%, but if this particular effect is offset, growth is limited to about 6%.
Source: Capital (13.03.2019)

UniCredit revises the forecast for the Bulgarian economy’s growth down to 3.3% Due to the materialization of some of the risks of its previous underlying scenario, UniCredit Bulbank has revised downwards its forecast for the growth of the Bulgarian economy in 2019 from 3.9% to 3.3%. The bank expects the economy to keep its growth slightly above potential in both 2019 and 2020. UniCredit Bulbank believes that this year Bulgarian exports will grow moderately against the backdrop of weaker prospects for global growth and world trade. GDP growth slowed down last year (from 3.8% in 2017 to 3.1% in 2018), but the economy entered a relatively high momentum in 2019, so the bank has predicted that growth would remain above potential for the fifth consecutive year. For the next year, the slowdown in developed economies, coupled with a slower job creation, due to the unfavorable demographic outlook, will affect GDP growth to 3.1% next year. With full employment in early 2019, job creation will lose its role as a major driver of growth. From an annual average of 1.5% over the last five years, the growth of new jobs is expected to slow down to an average of 0.4% over the next two years, with new jobs at the expense of falling unemployment and increasing the employment rate in the population aged over 55 years.
Source: investor.bg (01.04.2019)

The Berlin-based innovation company launchlabs opens an office in Bulgaria with a local partner DesignThinking.bg, the Bulgarian design company, unites forces with Berlin-based international company for business innovation and organizational transformation - launchlabs. Together, they create a company in Sofia named launchlabs, which will serve as a regional office and will serve customers in Central and Eastern Europe as a priority. The Bulgarian side holds a majority stake in the joint venture. The transaction value is not officially announced. The team of DesignThinking.bg is preserved, but it will grow gradually within the new venture. The studio wants to hire another 4-5 people by the end of 2020, mainly with expertise in implementing innovative projects and organizational transformations. Up to now, 25% of DesignThinking's revenue came from Bulgarian companies, and about 50% from international companies with representation in Bulgaria. The remaining 25% are related to work outside Bulgaria. Among the portfolio of clients of DesignThinking.bg are ING, Raiffeisenbank, UniCredit, SocieteGenerale, Telenor, A1, Vmware, Ubisoft, Konica Minolta. Since last year, the company has been working with Bulgarian companies such as Ciela and Econt.
Source: investor.bg (24.04.2019)

UniCredit: Bulgaria is among the top 3 countries in the region in economic growth in 2019 Bulgaria is among the top three countries in Central and Eastern Europe (CEE) with expected economic growth for the year, with UniCredit's economists forecasting that the country will finish 2019 with a 3.3% increase in GDP to EUR 58.4 billion. The region as a whole will keep growth of the economy above global levels as besides Bulgaria 5 more countries will achieve an increase of over 3.2% per annum of their gross domestic product. These are Poland, Hungary, Slovakia, Serbia and Slovenia. In 2020 the global slowdown will also affect the region and growth will slow down. The growth of Bulgaria's economy and the other countries in the region is largely due to the increased domestic demand, supported by the rising incomes of the population.
Source: investor.bg (09.05.2019)

BG Agro AD-Varna (AO0) BSE has received the materials of the regular General Meeting of Shareholders of BG Agro AD-Varna (AO0) as follows: BG Agro AD has appointed a General Meeting of Shareholders on 28 June 2019 at 10:00 a.m. in the town of Varna at 12 General Kolev St. under the following agenda: - Individual and consolidated reports of the managing bodies on the company's activity in 2018 - Adoption of the 2018 individual and consolidated annual financial reports of the company - Individual and consolidated reports of the registered auditor on the 2018 audit - Report of the Audit Committee - Report of the Investor Relations Director - Election of a registered auditor - Release from liability of the members of the managing bodies with respect to their activity in 2018 - Financial result allocation decision Draft resolution: Distribution of the 2018 profit in the amount of BGN 70,099.92 as follows: Allocation of 10% i.e. BGN 7,010 of the profit to the reserves, and the remaining BGN 63,089.92 plus part of the retained profits in the amount of BGN 1,551,207.68 to be distributed to the shareholders in terms of gross dividend per share of BGN 0.04 Dividends will be paid out via the Central Depository and the branch network of CB UniCredit Bulbank AD within sixty (60) days following the GMS date. - Report on the implementation of the remuneration policy for the members of the managing bodies - Determination of a new remuneration for a member of the Board of Directors The voting right will be entitled to all shareholders registered with the Central Depository fourteen (14) days prior to the GMS date, i.e. by 14 June 2019 (Record Date). The final date for transacting shares of this company on the BSE, as a result of which the holders will be entitled to exercise their voting right at the GMS, will be 12 June 2019 (Ex Date: 13 June 2019).
Source: BSE (10.05.2019)

Today, Asen Lisev, Executive Director of Bravo Property Fund REIT, officially opened the trading session of Bulgarian Stock Exchange and marked the beginning of the trading in shares following the capital increase of the company. The amount of the increase is BGN 36,050,000 and corresponds to the number of new shares having a nominal value of BGN 1.00 per share. The shares of Bravo Property Fund REIT are now being traded on the BSE Main Market, Special Purpose Vehicles Segment, under the BSE code - BPY. The lead manager of the public offering of new shares of the capital increase of the company is UniCredit Bulbank and the market maker of the issue of shares is Karoll Investment Intermediary. Bravo Property Fund REIT is a special purpose vehicle, investing pecuniary funds raised through the issuance of securities in real properties /real estates' securitisation/. In February the company acquired a building near a big shopping centre in Sofia at the value of BGN 60 million, having a built-up area of ca. 14,500 sq. m. "As a result of the considerable real estate market growth, we observe an increased interest in the sector on the part of the investors. Logically here comes the capital increase of Bravo Property Fund REIT, which listing is the most significant one since the beginning of 2019. We are convinced that the capital market provides an excellent opportunity for attracting funds for investment in real estates and we will witness further listings in the sector," said Ivan Takev, BSE CEO. There are presently thirteen special purpose vehicles for real estates' securitisation traded on the BSE Main Market, having a total market cap exceeding half a billion Bulgarian Leva.
Source: BSE (13.05.2019)

Unicredit Bulbank JSC - Sofia has appointed Annual general meeting on 30.03.1995. Meeting agenda includes: adoption of the Annual Report for Year .
Source: Registry Agency (21.05.2019)

A record number of 23 investment intermediaries and banks will take part in the fifth-anniversary event of the Equity Day initiative of Bulgarian Stock Exchange and Central Depository on June 12. The record number of partners of the initiative gives the individuals broad access to the capital market and enables them to trade in shares without fees and commissions on that day. The initiative aims at improving their investment culture and increasing their knowledge of equity instruments as a form of investment in Bulgaria. Here are the Equity Day partners: DSK Bank Bulgarian Development Bank BenchMark Finance Bulbrokers Dilingova Finansova Kompania Euro-Finance Elana Trading Zagora Finacorp International Asset Bank Capman Karoll Lenno Global Advisory First Investment Bank First Financial Brokerage House Sofia International Securities Texim Bank TBI Bank Tokuda Bank D Commerce Bank UniCredit Bulbank Up Trend Ug Market Eurobank Bulgaria Further information about the Equity Day is available on the https://www.bse-sofia.bg/en/equity-day. On the Equity Day all individual investors (natural persons) will be able to buy or sell shares on the BSE Main Market without fees and commissions to the Exchange, Central Depositary and the partnering Exchange Members. The special feature will apply to up to 15 orders per individual, entered and executed during the Equity Day on June 12, having a turnover of no more than BGN 2,000 per a single executed order.
Source: BSE (07.06.2019)

With regard to a request filed by UniCredit Bulbank AD, BSE withholds the rights of Blagoy Solakov granting him access to the BSE Trading System as of 01 July 2019.
Source: BSE (28.06.2019)

UniCredit: Bulgaria's exports are on the rise, domestic demand is losing momentum The acceleration of the growth of the Bulgarian economy this year will come from investment and exports. At the end of the year, Gross Domestic Product will grow by 3.3% and in 2020 by 3.1%, UniCredit economists predict in their latest quarterly analysis for Central and Eastern Europe. The bank experts keep their growth forecasts unchanged, but expect some rebalancing of the factors that drive it. Private consumption will remain the main driving force for growth this and next year, supported not only by wage and employment growth but also by the extra growth in household lending. Nevertheless, private consumption is projected to grow at a slightly slower pace than the forecast three months ago, as its growth path will increasingly be affected by unfavorable demographic trends, the analysis shows. The main factor to compensate for weaker private consumption, according to economists, will be stronger export recovery.
Source: investor.bg (02.07.2019)

ECB finds capital shortfalls at Bulgaria's Fibank, Investbank A comprehensive assessment by the European Central Bank (ECB) of six Bulgarian banks found capital shortfalls of 262.9 million euro ($292.8 million) at First Investment Bank (Fibank) and 51.8 million euro at Investbank, the ECB said late on Friday. "Four of the six banks covered by the comprehensive assessment – UniCredit Bulbank AD, DSK Bank EAD, United Bulgarian Bank AD and Central Cooperative Bank AD – do not face any capital shortfalls, as they did not fall below the relevant thresholds used in the AQR and the stress test," ECB said in a statement. "First Investment Bank AD, on the other hand, fell below the 8% CET1 ratio threshold for both the AQR and the stress test’s baseline scenario, as well as falling below the 5.5% CET1 ratio threshold used in the stress test’s adverse scenario. Meanwhile, Investbank AD fell below both the 8% CET1 ratio threshold used in the stress test’s baseline scenario and the 5.5% CET1 ratio threshold used in the stress test’s adverse scenario," it added. The comprehensive assessment was carried out on Bulgaria’s request as part of the country's efforts to join the banking union and the eurozone. Reacting to the results of ECB's comprehensive assessment, Fibank said it has secured 130 million euro to back its capital. "Fibank will address the remaining amount of 133 million euro with its operating profit, de-risking of its corporate portfolio, and any other eligible measures," it said in a statement late on Friday. The AQR is a prudential exercise, rather than an accounting exercise, and provides the ECB with a point-in-time assessment of the carrying values of banks’ assets on a particular date - December 31, 2018 for the six Bulgarian banks. The AQR also determines whether there is a need to strengthen a bank’s capital base. The AQR was complemented by a stress test exercise, which looked at how the banks’ capital positions would evolve under hypothetical baseline and adverse scenarios over the next three years - by 2021. That stress test was conducted using the methodology applied in the European Banking Authority’s 2018 stress test.
Source: Capital (29.07.2019)

The BNB has announced the banking system is stable The Bulgarian banking sector as a whole is sustainable. This is the main conclusion that the Bulgarian National Bank (BNB) made on the basis of the results of the European Central Bank's audit of assets and stress tests of six Bulgarian banks. At the end of 2018, the ECB chose six Bulgarian banks - UniCredit Bulbank, DSK Bank, UBB, Fibank, CCB and Investbank, to which in the beginning of 2019 it appointed an asset check. The inspection was due to Bulgaria's application to apply for the euro zone prefix - ERMII, as well as for the EU Banking Union. BNB has discussed the results of the review and endorsed them. "Follow-up will be undertaken to further strengthen the bank's capital position in strict accordance with the BNB mandate and the relevant regulatory framework," the central bank said.
Source: mediapool.bg (29.07.2019)

Extrapack builds a Veliko Turnovo Business Center with BGN 25 million Ektrpack has started the construction of the Veliko Tarnovo Business Center, which will be located next to the company's factory in the western part of the city. The investment will amount to BGN 25 million and the financing is provided by UniCredit Bulbank. The building, which has a total built-up area of 30,268 sq.m, will be constructed by the Gabrovo-based company Lucky Build 2011. The eight-story building is expected to be ready in the fall of 2021. The business center will have parking lot with 230 parking spaces, office premises, which will have an area between 58 and 600 sq.m. or a total of 15,000 sq.m. It is envisaged that there will be retail outlets on the first level that will have direct access to the parking lot. According to investors, the most interesting feature of this project is its Convention Center. There will also be a sports center, which will house two gyms and five collective sports and exercise rooms. According to the owners of Extrapack, the most interesting part of the sports center will be the swimming pool. Another news for Veliko Turnovo is the Data Center, which will be located in the building.
Source: Yantra - Veliko Tarnovo (20.09.2019)

UniCredit forecasts a 3.5% growth for Bulgaria this year The Bulgarian economy will finish the year with a growth of 3.5%, experts of UniCredit Bulbank predict in their latest quarterly analysis of the Central and Eastern European economy. Expectations of slightly higher than expected three months ago annual growth reflect the combination of stronger than expected export growth and a sustainable improvement in labor market conditions, against a backdrop of strong job recovery and wage growth. In 2020, there will be a slight slowdown to 2.9%, mainly due to external factors such as weaker demand in the euro area, uncertainty triggered by trade wars and weak US growth. "These three factors will lead not only to a lower demand for Bulgarian exports, but also to greater uncertainty, which is likely to affect private investment growth. The latter is already evident in the latest business confidence surveys, where global insecurity has become the number one factor limiting plans for expansion of Bulgarian companies in the industry after a prolonged period, in which the first place was addressed by labor shortages" the analysis reads.
Source: economic.bg (30.09.2019)

Six Bulgarian banks are among largest in Central and Eastern Europe 6 Bulgarian banks rank in the Top 100 of the largest vaults in Central and Eastern Europe. The ranking is composed by RIA Rating Agency on the order of the leading Russian financial site Prime. UniCredit Bulbank is ranked 42nd; DSK is 57th, United Bulgarian Bank is 69th, First Investment Bank is 76th, Postbank is 88th, and Raiffeisen's branch in this country holds 91st position. The banks have improved their performance compared to 2018. The biggest jump is with UBB with 27 places. It has shown the best dynamics among the Top 100, with assets having grown by 46% to $ 6.6 billion after the merger with Sibank. DSK and First Investment Bank have significantly improved their positions in the ratings as the first one climbs 10 places up, and the second - 6 places.
Source: economic.bg (10.10.2019)

The first EUR 200 million have been provided for Balkan Stream Bulgartransgaz has taken a loan of EUR 200 million from 4 banks for the down payment of the consortia that is building Balkan Stream. 9 banks took part in the procedure, but contracts were signed only with Citibank, ING Bank, UniCredit Bulbank and the International Bank for Economic Cooperation. The loan is secured by dollar deposits with these banks. Dollars currently carry more interest than the euro loan. In addition, payment to contractors is in euro. In this operation, the company will earn BGN 2 million in 6 months. There is an option to extend the period by another 6 months, which would bring another BGN 2 million. These EUR 200 million will provide the majority of the advance payment. To the Saudi Arcad consortium, which is already building the linear section of the pipeline, it is BGN 250 million and VAT 50 million. BGN 140 million and VAT 28 million are for the Ferroshtal Balkangas Consortium, which is building the two compressor stations. The payment period for the linear part of the pipeline is 120 months after commissioning, and for compressor stations - 2 years.
Source: 24 chasa (23.10.2019)

BDB is looking for buyers of Sparky and Sparky Eltos The state-owned Bulgarian Development Bank (BDB), which is the largest lender of the Sparky group, has agreed with other lenders to restructure the companies' liabilities so that no enforcement of debt arises. BDB is in talks with potential investors and expects to finish them by the end of the year. At the same time, the financial institution will provide additional funding to Sparky in Ruse so that it can fulfill its urgent orders. According to mid-year data, the short-term liabilities of the two companies to banks amount to a total of BGN 80 million, and a considerable part of them are past due. The bulk of the debt is of the Lovech-based power tool manufacturer Sparky Eltos - nearly BGN 60 million. In its latest reports, the company does not provide details on creditors, but as of 2017 it owed BGN 37 million to BDB. More importantly, this amount had to be repaid by September last year, which did not happen. The company also has to repay about BGN 17 million under a 10-year syndicated loan from BDB and the International Investment Bank, which was granted in 2015. The liabilities of the Ruse-based agricultural machinery producer Sparky are more modest - the short-term part is about BGN 19 million by the middle of the year.
Source: Capital (25.10.2019)

Official: Czech Petr Kellner buys bTV BTV's owner Central European Media Enterprises (CME) and billionaire Petr Kellner, a Czech investment fund, PPF, have reached a final deal to buy ÑÌÅ by PPF in a deal for about USD 2.1 billion. It must now be approved by the shareholders of the CME, the European Commission and some national regulators, which is expected to take several months. The deal was expected and with it the PPF receives 30 television channels in Central and Eastern Europe. Six of them are Bulgarian bTV, bTV Cinema, bTV Comedy, bTV Action, bTV Lady and Ring, the rest are in the Czech Republic, Romania, Slovakia and Slovenia. Thus, in Bulgaria, Kelner will be able to achieve the synergy of the Telenor telecom purchase deal he sought last year and had an agreement with the owner of Nova TV - the Swedish MTG, but the Competition Commission prohibited the merger. However, the approval of the concentration will now be referred to the European Commission's Directorate-General for Competition, as the transaction is cross-border. The agreement was unanimously approved by the Board of Directors of the ÑÌÅ, with the recommendation of the Special Committee on the Board.
Source: mediapool.bg (28.10.2019)

Unicredit Bulbank: Only 2.3% of the savings in Bulgaria are directed to investments Investments in mutual funds in Bulgaria have grown by 23% over the last two years, but despite the positive trend, consumers are lagging far behind the levels of activity typical of the countries of Central and Eastern Europe (CEE). This shows an analysis of Unicredit Bulbank, according to which last year, for every BGN 100 of deposit, Bulgarians invested BGN 2.40 on the capital markets. At the same time, an Eastern European has invested an average of EUR 20 for every EUR 100 deposit. According to experts, the outlook for deposit interest rates is that they are around zero levels, while the capital markets continue to have opportunities for profitability. There are over 9 million deposits in Bulgaria, worth more than BGN 52 billion, with the average consumer keeping BGN 5 thousand in their savings account. The yield on these funds is minimal given the environment of zero interest in the banking system. However, only 2.3% of the population's savings were invested in products other than deposit, according to the analysis of Unicredit Bulbank, while in CEE the level is 16.7%. Over the last two years, there has been a noticeable upward trend in activity, mainly through the purchase of savings plans that are actively advertised in banking offices.
Source: Capital (29.10.2019)

ExtraPack invests BGN 25 million in a modern business center in Veliko Tarnovo The leader in the production of bags, packages of paper, textiles and polyethylene - the company Extrapack, is embarking on a new venture - the construction of a modern business center with no analogue not only in Veliko Tarnovo, but throughout the country. The Veliko Tarnovo Business Center (BCVT) project was officially unveiled on September 19 this year and will take two years to be completed, which means it will be ready in the fall of 2021. The project is the work of Ivo Petrov Architects Studio, and the construction is entrusted to the company Lucky Stroy 2011 EAD - Gabrovo. The investment in the construction (excluding equipment and furniture) amounted to BGN 25 million and was secured by a loan from UniCredit Bulbank. The business center will have parking for 230 parking spaces, 161 bicycle spaces and 33 electric vehicle charging stations. The office space will be 58 to 600 square meters, or 15,000 square meters in total, and will be flexibly configurable. The business center will also have facilities for shared workplaces.
Source: Capital (11.11.2019)

Unicredit Bulbank sold bad loans for EUR 50 million Unicredit Bulbank has sold bad loans to APS Holding and Balbec Capital for EUR 50 million, which are owed by small and medium-sized enterprises. With this deal for 2019, bad loan sales in Bulgaria are close to BGN 1.7 billion against an estimated BGN 2 billion. In the non-performing portfolio of UniCredit Bulbank there are only corporate loans, mainly to small and medium-sized enterprises. The package contains both secured and unsecured claims, with the initially proposed volume of EUR 80 million. The deal is centrally negotiated, with buyers being APS Holding, which has a debt collection unit in Bulgaria, and Balbec Capital, which is also a major European player on the market. Debt relief by transferring them to specialist debt collection companies is a strategy of the Italian banking group that aims to get rid of non-performing activities and at the same time to improve its efficiency in lending. The specific deal for the portfolio of EUR 50 million is expected to be reflected in the financial results of the Bulgarian bank in the fourth quarter of this year.
Source: economic.bg (22.11.2019)

Synergon Holding AD-Sofia (6S7) Notification under Art. 114a (7) of the POSA regarding a bank credit agreement between the subsidiary Vitalgas EOOD and UniCredit Bulbank AD
Source: BSE (20.12.2019)