One of the first IPOs on the Bulgarian Stock Exchange in 2008 will be of Mecom JSC. The IPO of 10 682 800 new company shares at minimum price of BGN 2.2 and without price ceiling will be carried out in the second half of January. The exact date will be announced by the leading manager of the offering – United Bulgarian Bank JSC and the co-manager CB Allianz Bulgaria JSC. The increasing of the capital will be considered as successful if 10 million shares are registered and paid at least. If all the offered shares are registered, the minimum sum, to be accumulated, will be about BGN 23,462 million.
Source: Monitor (02.01.2008)

Bulgaria's financial regulator Wed licensed Municipal Bank Asset Management, an asset manager incorporated by Municipal Bank, partially owned by the city of Sofia. The company plans to market one balanced and one conservative mutual fund. The most optimistic target for the start of operation of the new funds is Jun, said executive director Vasil Trenev. Investbank, Raiffeisenbank, UBB and DSK Bank are the other local lenders in the business of managed assets. Corporate Commercial Bank secured the relevant licence in '07 but is yet to offer mutual funds. First FBH Asset Management markets mutual funds under the First Investment Bank brand.
Source: Dnevnik (31.01.2008)

Mel Invest Agricultural Opportunity Fund will double its capital through the issuing of slightly over 14 million new shares, the board of directors of the company decided. The issue value of the shares is set at BGN 1.1 apiece. At least 2 million shares will have to be subscribed and paid in order for the capital raise operation to be rendered a success. The move is aimed at raising funding for the investment programme of Mel Invest. The proceedings from the capital raise operation will be used mainly for the purchase of arable land. Alpha Finance Holding owns 26% of the capital of the Mel Invest Agricultural Opportunity Fund. Mel Invest's stock appreciated by 0.74% to BGN 1.36 per share on Friday.
Source: Pari (11.02.2008)

Bella Bulgaria, Beiersdorf Bulgaria, Danone Serdica, Kamenitza, Coca-Cola Bulgaria, Globul, Kraft Foods Bulgaria, Mobiltel, Nestle Bulgaria, United Bulgarian Bank and Heineken/Zagorka are among the founders of the Bulgarian Advertisers Association (BAA) announced on Mon. The main goal of the organisation will be to improve the efficiency of ad spending and to introduce and develop standards for responsible and ethical communication with the consumers. It will also facilitate the exchange of good practices and to protect the interests of both the advertisers and the consumers, said BAA.
Source: Dnevnik (19.02.2008)

Rail Transport Giants Eager to Get Hold of BDZ A couple of European rail transport giants are licking their chops for the Bulgarian National Railway Company (BDZ), The Standart learnt. Germany's Deutsche Bahn and Austria's OBB have expressed desire to acquire part of the company. According to well-informed sources of The Standart, OBB and Deutsche Bahn's business ambitions are mainly focused on purchasing BDZ's freight operations, which was separated from the passenger service end last year. The chief aims of this restructuring were to cut off the subsidizing of the passenger transport service from the freight department's revenues, as well as to closely scrutinize all company accounts to find out what activities bring profit and what not. Both Deutsche Bahn and OBB are well known in Bulgaria. The former and the Bulgarian state-owned Railroad Infrastructure Company signed a memorandum of cooperation in 2007; the latter has been advising BDZ on how to wrestle with existing financial problems and develop into a successful company. "It's no wonder that foreign companies are particularly interested in BDZ's freight service," experts in transport commented. The reason is that the Bulgarian railway services market in Bulgaria will be liberalized as of 2010, which means that BDZ will no longer hold the monopoly on it. As a result, any of Europe's railway companies will be able to set foot on the local market provided that they wish to and, of course, that they meet the EU criteria. And since Deutsche Bahn and OBB already hold certificates for technical safety, they will be able to freely enter the local railway market competition as major opponents to the state-owned monopolist.
Source: Standart (25.02.2008)

Meat processor Mekom collected BGN 5.7 million from its initial public offering, the IPO manager, United Bulgarian Bank (UBB), announced. The payment of shares from the company's capital raise ended on March 13. The company was the first to extend the deadline for subscriptions by 44 days. The price per share was set at BGN 2.20 using the bookbuilding method. Investors subscribed 2.6 million of the total 10.86 million shares offered. Thus, Mekom will raise its capital from BGN 53.4 million to slightly more than BGN 56 million. The funds will be used to finance Mekom's investment programme. Trade in Mekom shares is expected to start on the Bulgarian Stock Exchange at the end of April. The free float will be about 5%.
Source: Pari (17.03.2008)

The dividend payout of Druzhba Staklarski Zavodi JSC for 2006 started on 15.10.2007. The total size of the dividend is BGN 14 400 000. The dividends are paid out through Central Depository JSC and through the branch network of United Bulgarian Bank JSC in the whole country. The dividends of the majority owners Barek Overseas, Cyprus and Glasinvest, JSC, Cyprus, are paid out stage by stage on their accounts. The dividend, which was paid out as to the end of 2007, is BGN 7 497 992.
Source: x3news.com (17.03.2008)

Mekom, the local meat processing company, is expected to start trading on the Sofia stock exchange in late Apr, said United Bulgarian Bank which lead managed the company's IPO. The share offering raised 5.69 mln levs for Mekom. Although the subscription rate was sufficient to chalk up the IPO as a success, investors scooped up only 2.603 mln shares or 24.5% of the total issue. The free float of the company is seen at around 5%.
Source: Dnevnik (17.03.2008)

Bulgarians used ATMs to withdraw cash and make payments for a total amount of 8.959 bln levs in 2007, shows data of national card operator Borica. Cash withdrawals added up to 7.137 bln levs or almost 80% of recorded ATM transactions. POS terminal payments accounted for 12.7% of 2007's card transactions. There were 3,644,041 Borica-branded cards in circulation last year. Their growth has slowed from 49.3% in 2003 to 7.4% in 2007. In addition to the widening base, the loss of momentum is also due to the decision of some local banks to quit the Borica system and deploy an ATM network of their own. These include DSK Bank, United Bulgarian Bank, Postbank and First Investment Bank.
Source: Dnevnik (19.03.2008)

At the extraordinary General Meeting of Shareholders of Druzhba Staklarski Zavodi AD-Sofia, BSE code - DRUPL, held on 26.03.2008, have been taken the following decisions: - Amendments to the Statute of the company by including: The company's capital may be increased up to BGN 200 million utmost by virtue of an unanimous decision of the Board of Directors within a period of five years as from registration of the amendments to the Statute as adopted by the GMS on 26.03.2008. The company may issue bonds on the total amount of BGN 200 million within a period of five years as from registration of the amendments to the Statute as adopted by the GMS on 26.03.2008. - Approval of a decision for an increase in capital of the company pursuant to Art. 246 (4) in relation to Art. 197 of the Commerce Act, also pursuant to Art. 79 (3), item 4 & (4), item 5 and Art. 112 (1) of the POSA at the expense of company's own funds from BGN 6,689,562 to BGN 53,516,496 through issuance of 46,826,934 new ordinary, registered, dematerialised and voting shares of BGN 1.00 nominal value each. The right to obtain new shares of the capital increase shall be entitled to all shareholders registered with the Central Depository by the 14-th day following the date of the GMS at the latest. By that time, every shareholder will receive 7 new shares of the increase per one share held. The GMS elects CB United Bulgarian Bank as the investment intermediary authorised to administer the capital increase of the company. In view of a denial by the Commercial Register to the Registry Agency to announce the extraordinary General Meeting of Shareholders of Druzhba Staklarski Zavodi AD appointed for 26.03.2008, the decisions taken are subject to the condition that the judgement on the appeal against the denial would be in favour of the Company as the judgement will come in force till 13.05.2008 at the latest. Right to participate in the capital increase will have all shareholders, registered with the Central Depository up to 14 days following the date of the GMS at the latest i.e. by 09.04.2008 (Record Date). The final date for transacting shares of this company on the BSE-Sofia floor, as a result of which the holder will be entitled to obtain new shares will be 07.04.2008 (i.e. Ex Date: 08.04.2008). N.B.: The dates for participation in the capital increase will be valid on the condition mentioned in the GMS decisions above. The entire text of the notification is available at: http://www.x3news.com
Source: x3news.com (28.03.2008)

Bulgaria's Financial Supervision Commission has confirmed the prospectus for initial public offering of Railway Infrastructure Holding Company. Shareholders in the company are Vassil Bozhkov, who holds 80% of the capital, and Orlin Hadjiyankov with 20%. This will be Bozhkov's third company to be listed for trade on the Bulgarian Stock Exchange. The other two public entities are Holding Roads and Moststroy, both dealing with road construction. Railway Infrastructure Holding Company will offer a BGN 5.583 million issue of shares with a par value of BGN 1 and an issue value of BGN 5. The IPO will be organised under a book building method. Investment intermediary of the offering is United Bulgarian Bank.
Source: Pari (10.04.2008)

The combined profits of the Bulgarian banks rose 50.2% year-on-year to 359 mln levs in Q1 2008, shows data of the central bank. The banking system assets stood at 59.5 bln levs at the end of the review period, up a 0.7% smidgen over the end of 2007 and 33.6 over March 2007. The nation's five biggest banks - UniCredit Bulbank, DSK Bank, United Bulgarian Bank, Raiffeisenbank (Bulgaria) EAD and Eurobank EFG Bulgaria, have marginally improved their combined market share to 56.8%. The second tier banks were sitting on 38.1% of the sector's assets by the end of Q1 2008 while the local branches of foreign banks held 5.1%. Gross credit and advances posted a quarterly gain of 2% while the yearly increase was 38.4% to 46.8 bln levs, said the central bank. Loans to businesses rose 6.8% in Q1 and 58.2% year-on-year. Mortgage loans recorded the highest growth rate during the review period of 7.8%. Consumer exposures are up 55% year-on-year with mortgage loans up 61.2%. The deposit portfolio of the banks was fractionally down quarter-on-quarter but posted a 33.3% increase year-on-year. Household deposits accounted for the biggest share of total deposits by the end of Q1 2008 at 38.1%, up 4.6% over end-2007 and 30.2% over Q1 2007. The Q1 total capital adequacy of the system was reported at 14.5% versus 13.8% by December 2007.
Source: Dnevnik (07.05.2008)

Diana Textile LTD - Sandanski manifactures fine top knitted products for ladies. Since the beginning of its activities, 9 years ago, the tailoring company is a partner of the world known Swedish commercial chain H & M, works for Top Shop, which is part of an international consortium Arcadia Group. So our production is sold to the major world markets - England and all EU countries and China, Hong Kong, etc., said manager Ivan Davchev. The company in Sandanski is a subsidiary of Greek entrepreneurs. The basic manifacture of products is in Sandanski, and the logistics and the materials are provided from Greece. The membership of our country in the EU facilitated business through incentives of the customs regime. Another advantage is that since the beginning of April we export products directly from the plant in Sandanski to our customers. We used to export through Greece, which meant additional costs, explained Ivan Davchev. Knitwear products are available in wide price range of 15-20 and 115 EUR, but they are mainly intended for the general public. In recent years the knitwear apparel established in fashion and lifestyle as it is easy to maintain and pleasant to wear. But it is expensive. It is becoming more and more difficult to manufacture it. In Greece there are notailoring factories any more. The rating of the textile industry in our country reduced as well after the increase in the last 10-15 years. The main reason is the competition from low prices, which cotton producing countries can afford to offer, from the so-called. group of Asian Tigers, and the cheap labour in developing countries. We plan to build our own manufacturing base in the region of Sandanski and to leave the premises that we currently rent. The investment will be at least EUR 1 million. All our machines are modern. We insist on the high quality of our production and this will continue in the future. We cooperate in partnership with UBB, Post Bank and DSK Bank, summarizes manager Ivan Davchev.
Source: Pari (10.05.2008)

Agro finance REIT successfully increased its capital The public started subscription, which started on May 7, for the third capital increase of Agro finance REIT finished successfully on June 13. Shareholders, who excercised their rights, and persons, who have bought rights during their bourse sale on May 29, have registered totally 16,081,754 new shares of emission value BGN 1.20. The total emission value of the registered shares BGN 19,298,104.80 was entirely paid to a special account of Agro finance REIT opened in United Bulgarian Bank JSC. As a result of the successful capital increase, it now reaches BGN 32.220 mln from previous BGN 16.138 mln, and taking into account the formed bonus reserves from the shares emission – from BGN 17.687 mln to BGN 36.985 mln. The company will use the raised funds for its strategy to invest in quality and fertile lands in regions with developed lease dealings. In June 2008 the portfolio of the company exceeded 80,000 da, about 97% of which are quality lands of first to sixth category.
Source: Darik Radio (25.06.2008)

The local United Bulgarian Bank, part of the NBG Group, said it will reinvest fully the profit it earned last year. The general meeting of shareholders has approved the proposal to convert into capital the 2007 profit of 185.11 mln levs. For the fourth year running, NBG decides to pay no dividend and fully reinvest the bank's earnings. This approach ensures capital support and strong market growth for the bank, said UBB chief executive director Stilian Vatev. UBB's gross profit rose 47.1% year-on-year to 205.7 mln levs in 2007 while assets added 54.75 to 6.1 bln levs.
Source: Dnevnik (01.07.2008)

Raiffeisenbank is the winner of this year's Bank of the Year award, bestowed by the Pari daily. Thus, the financial institution received the most prestigious prize in Bulgaria's banking sector for the third time in its history. The honourary awards committee announced the official results several hours before the prizes were bestowed. The other prizes were received by Piraeus Bank, for development dynamics, the United Bulgarian Bank, for efficiency, UniCredit Bulbank, for market share, and Corporate Commercial Bank (CCB) won the Clients' Award. This year, the committee is headed by minister of finance Plamen Oresharski. The other members are distinguished state officials, businessmen, and various representatives of state and economy. The ranking has been made on the basis of banks' financial indicators, published on the website of the Bulgarian National Bank. Only seven banks can boast the Bank of the Year award. These are: Raiffeisenbank, DSK Bank, Bank of Agricultural Credit, Postbank, Bulbank, First Investment Bank and United Bulgarian Bank. Raiffeisenbank was the only one of them to win the award three times, while Postbank, DSK Bank, and the Bank of Agricultural Credit were distinguished two times. The other highly valued prize is the Clients' Award. First Investment Bank is the all-time favourite of customers, having won the prize three times: in 2002, 2003 and 2006. Corporate Commercial Bank has won the award for the first time.
Source: Pari (04.07.2008)

Reiffeisen was declared Bulgaria's Bank of The Year for 2007 in a traditional contest, organized by the prestigious local financial Pari Daily. This is the eleventh time that the newspaper selects Bank of the Year in an effort to encourage the financial institutions to work for the progress of Bulgaria's economy. Pireos Bank reaped the prize for dynamic development, while Uni Credit Bank won the Market Share award. In the same contest, the United Bulgarian Bank was distinguished as the most efficient. The criteria for selecting the nominees in the prestigious contest are traditionally based on the dynamic and efficient development of the banks as financial intermediaries.
Source: Darik Radio (04.07.2008)

The last date for deals with bonds of United Bulgarian Bank JSC on the Bulgarian Stock Exchange, as a result of which the acquirer has a right of interest payments, is July 8, Tuesday. The next interest payment on the emission under ISIN code BG2100011043 will be on July 12. The coupon will be 6.625 per cent and all bondholders, registered in the Central Depositary as to July 10, would have the right to receive interest payment.
Source: Banker (08.07.2008)

Trade in shares of Bulgarian meat packer Mekom will start on the Bulgarian Stock Exchange (BSE) on Wednesday, the issue manager United Bulgarian Bank announced. The BSE will allow trade in more than 56 million Mekom shares with par value of BGN 1. The listing price is BGN 2.20, the same as during the initial public offering. The free float is 4.64%, or 2.6 million shares. Mekom's total revenue for the first quarter of 2008 was BGN 14.3 million.
Source: Pari (15.07.2008)

? The production of Konserva SiL-Bulgaria JSC has long been recognized and sought at to European markets. The maker of frozen fruits and vegetables was established in 1993 with funds from SAPARD and credit of UBB and the among first local companies, which started to export their production. Now over 95 percent of it goes for export. The Elena-based factory is one of the few in Bulgaria, which exports truffles to the European market. The exotic delicacy goes especially for France. In Bulgaria there is no white truffles, which is extremely expensive and demanded. In the autumn on the southern slopes of the Elenski Balkan, where there are limetree forests, black truffle can be found. From September starts buying of several autumn mushrooms, including gold and gray chanterelle, edible boletus, maslovka which also have good price for the Western markets. Wild fruits and flowers are this year's latest hit on the european market.
Source: Pari (22.07.2008)

Bulgarian banking system reported BGN 728.5 mln profit for the first half-year of 2008, according to BNB. This is BGN 238.19 mln or 48.57% more compared to H1’2007. The three biggest banks report profit over BGN 100 mln. Unicredit Bulbank has BGN 154.8 mln profit, DSK and UBB profits are BGN 117.8 mln and BGN 112.3 mln respectfully. Raiffeisenbank earned BGN 81.3 mln, Eurobank EFG – BGN 42.09 mln and Piraeus Bank – BGN 34.5 mln. Only two banks reported loss for the period - Emporiki Bank and Alpha Bank.
Source: Standart (01.08.2008)

BIA and United Bulgarian Bank JSC signed a Cooperation Agreement. The document was signed by Bozhidar Danev, Chairman of BIA, Stilian Vatev, Chief Executive Officer of UBB and Radka Toncheva, Executive Director of the bank. The purpose of the agreement is to support the processes of development of the national economic potential and achieving sustainable development, increasing economic activity and competitiveness of Bulgarian business, promoting entrepreneurship and creating conditions to reduce the regional economic and social differences.
Source: Capital market (18.09.2008)

Yesterday's session on BSE showed unusual activity in trading REIT shares. Deals were done of 15 joint stock companies with special investment purpose. This is the result of restructuring of investors portfolios in the end of the third quarter, Marin Kosturski from BenchMark Finance commented for Pary Daily. According to him, the low levels at which companies are being traded at the moment form this high interest.
Source: Pari (30.09.2008)

UniCredit Bulbank to distribute FLAG finances UniCredit Bulbank will be the main credit institution to take part in the distribution of finances of FLAG fund. The bank won the competition in contest with DSK Bank and UBB. FLAG fund will help municipalities in developing projects for sponsorship from the Cohesion and structural funds of European Union. The initial capital of the fund is planned at EUR 50 million, of which EUR 15 will be from the state budget, the rest 70% will be in the form of loan.
Source: Pari (22.10.2008)

Global agency Standard & Poor’s placed under review with a negative outlook the ratings of Bulgaria’s biggest bank, UniCredit Bulbank, and the market’s number three by assets, United Bulgarian Bank. The move follows placing Bulgaria’s sovereign credit rating on credit watch negative because of increased vulnerability during the ongoing global financial crisis. UniCredit Bulbank CEO Levon Hampartzoumian told the rating action was not prompted by the lender’s operations but comes as its rating is restricted by the country’s.
Source: Dnevnik (27.10.2008)

Greek Central Bank called for the local lenders to stop providing capitals to their Balkan branch offices. Subsidiaries of Greek banks in Bulgaria are Post Bank, UBB and Bank Piraeus Bulgaria, while Alpha Bank has a branch office. Emporiki Bank – Bulgaria of the Greece-based Emroriki, which is owned by the French group Credit Agricole. Greek Central Bank said the resources should remain in the country as the Greece experiences the worst crisis for the last 15 years.
Source: Sega (30.10.2008)

Greek undertaker Hristos Leopulos, owner of Neoknit EAD textile company, has been developing his business in Bulgaria in the last ten years. Two months ago his new plant on 7,000 sq. m opened the doors in Blagoevgrad. The investment is for EUR 3.1 million and offers 600 working positions. The company has 10% income growth for 2008 and the whole production is exported to Europe.
Source: Pari (10.11.2008)

I know all about the textile industry - from the knitting of fabrics, painting, cutting to sewing of finished knitwear products, says Christ Leopulos, owner of the company Neoknit SPJSC. He is in the textile business for 20 years and is among the few entrepreneurs able to develop a perfectly closed cycle of production. He owns a textile factory for production of fabrics near Thessaloniki. For the last 10 years he has been developing apparel business in Blagoevgrad. His new factory for making branded apparel operates from 2 months now. More than EUR 3 million are invested in modern building. The factory was built by European standards and is one of the biggest in Bulgaria.
Source: Pari (10.11.2008)

Ten banks increased housing loan interest rates in October, showed data of the moitepari.bg site which compares the loan and otherwise programs of different lenders. Mortgage rates jumped by over 12%, the biggest since July when eight banks performed a concerted hike, the website said. Some local-currency rates have sped up by 2 percentage points from 0.5-1.5 points before. Increases were performed by Allianz Bank Bulgaria, DSK Bank, Piraeus Bank Bulgaria, Postbank, UBB, Municipal Bank and ProCredit Bank. On the other hand, the falling six-month Euribor dropped the rate of ProCredit Bank’s euro-denominated loans. Raiffeisenbank Bulgaria, Societe Generale Expressbank and UniCredit Bulbank also raised rates, and EIBank cut them by 2.0 basis points.
Source: Dnevnik (14.11.2008)

Bulgarian Banks Run out of Fresh Capitals According to information from the Bulgarian National Bank (BNB), the banks in Bulgaria are running out of fresh capitals and this is why they set higher interests on their clients' deposits. At the end of October, the assets of the banking system amounted to BGN 68.6 billion. On monthly basis this means a decrease by 1.1%, but on annual the increase is 28.9%, investor.bg reported. Under the unfavorable conditions on the international financial markets, the banks' capitals and securities are shrinking. The report of the national bank also reads that the non-banking institutions and the households tend to put less money in the banks, influenced by the unstable situation on the international financial markets. In September, the banks attracted capitals in the size of BGN 60.9 billion compared to BGN 60.1 billion in October. At the end of October, the deposits of private clients were the chief source of finances for the banking sector, accounting for 36.3% of the attracted capitals in the banking system. At the end of October, the granted bank loans amounted to BGN 56.4 billion, which is an increase by one percent in a month's time. The housing loans increased by 2.4% up to BGN 8.03 billion and the consumer loans went up by 2% up to BGN 9.11 billion. In October, the banking sector reported profit of BGN 1.22 bln, which is an increase by 26.2% compared to the same period of last year.
Source: Standart (02.12.2008)

United Bulgarian Bank JSC - Sofia has appointed Extraordinary Meeting on 09.01.2009. Meeting agenda includes: amendments in the statute, changes within the management bodies.
Source: Registry Agency (05.12.2008)