Bulgaria's Stock Exchange Sofia is among the capital markets in the world that reported the greatest decline in 2010, with its main index, SOFIX, slumping by 15.1%. Greece's capital market sunk by 35% last year and became the worst performing stock exchange in the world, while the main indexes of the Spanish capital market sunk by about 15% in 2010. The turnover of the Bulgarian Stock Exchange slumped by 21.6% down to 682.9 million levs in 2010, and the number of concluded deals fell by 44.9%. The hapless condition of the Bulgarian Stock Exchange makes any investments in its silver fund quite precarious.
Source: Standart (04.01.2011)

Bulgarian stocks traded on the bourse in Sofia failed to end its negative run in 2010 for another consecutive year amid the recovery of international stock markets, which were pushed by economic incentives by governments and improving corporate results, wiping Lehman Brothers' collapse out of their history. The lack of liquidity, healthy assets and adequate corporate management in the country sent the bourse at a level comparable to the lowest positions witnessed since the start of the crisis. The benchmark SOFIX index was one of the worst performers among the indicators of 12 emerging markets and the US and UK, showed calculations of Dnevnik, based on Bloomberg and Reuters data. For 2010, SOFIX lost 3%, compared with a profit of 19% a year earlier, touching levels seen after the crash at the end of 2008. Ukraine, Russia and Turkey were the best performers in 2010, while countries to fare worse than Bulgaria were Macedonia and Greece.
Source: Dnevnik (04.01.2011)

According to business website investor.bg, the Bulgarian stock exchange has grown by only 1.03% in the past two years. Other Balkan countries have also reported bourse slumps - in Slovakia, for instance, the capital market has sunk by 36%, in Greece - by 21% and in Slovenia - by only 0.5%. On the whole, Bulgaria's stock exchange has sunk by 79.7% since 2008. And while many countries saw their main indexes soaring by as much as 50% a year later, Bulgaria's Sofix gained only 19% and sunk by another 15.1% a year later. Thus, Sofix is the second weakest stock exchange index on the Balkans after the one of Greece, which lost 36% of its value at the end of 2010.
Source: Standart (05.01.2011)

Vienna Stock Exchange interested in buying shares from BSE Sofia "Representatives of the Vienna Stock Exchange have shown interest in the Bulgarian Stock Exchange (BSE)," announced managers of the operator at the opening session yesterday. Since then, stocks of the company are being publicly traded. According to Assen Yagodin, Chairman of the Board of Directors of BSE Sofia, trading would help for establishing an objective assessment of the company, which would lead to more successful negotiations with strategic investors. Currently, some 49.95% of the shares of the BSE Sofia are freely traded, while the rest of 50.05% remain in possession of the Ministry of Finance. The size of the issue is BGN 6,582,860 and it corresponds to the number of shares, each with a nominal value of BGN 1. The shares are ordinary, registered, dematerialized and freely transferable. The indicative reference price for the first trading session is BGN 1. BSE’s management declared that the public status of the operator meant even greater commitment to the public. "We have achieved substantial results so far. We have reduced certain expenditures by almost 20% and have redirected the respective savings to the construction of a backup centre, supposed to ensure the operation of the systems in case of technical problems," said Assen Yagodin. He commented that the Bulgarian market had been a magnet for attracting foreign capital, which had contributed to the economic growth of the country. Although the economic crisis impeded the capital market development in Bulgaria, in the future BSE will once again be the face of our business in Europe and in the region. According to Ivan Takev, Executive Director, the framework for the development of the Stock Exchange was outlined in 2010 and some of the objectives were already achieved. In the first minutes of the yesterday's trading session a deal with BSE shares was concluded, which assessed the value of the stock exchange operator to BGN 26.99 mln. Ten shares were sold at a price of BGN 4.27, as the own capital behind each share was BGN 1.63, as of June 30, 2010.
Source: Class (07.01.2011)

Vienna Stock-Exchange has expressed its interest in acquiring shares of the Bulgarian Stock-Exchange (BSE), Bulgaria's Finmin Simeon Djankov stated. Yesterday Minister Djankov rang the bell to give the start of stack-exchange trade with shares of the Bulgarian Stock-exchange AD. The idea is that the Bulgarian state keeps the majority package of 50% plus one share so that the 49,9% of the share of Bulgarian Stock-Exchange-Sofia be freely traded. The size of the emission of shares of the BSE is 6,582,860 levs as the par value of each share is 1 lev. "We need a strategic investor so that the BSE becomes a big player and a regional leader but this is hardly possible to become a fact for a month only," Minister Djankov commented. "The public status of the BSE will facilitate the negotiations over the finding of a strategic investor," Minister Djankov added. Minister Djankov also explained that the trade with shares of the BSE would guarantee transparency at the management of the company and would give a possibility for evaluation of its managers.
Source: Standart (07.01.2011)

Finance Minister Djankov: Bulgaria ahead of Luxembourg in terms of lowest debt to GDP ratio "Bulgaria already ranks second among EU countries in terms of debt to GDP ratio, having overtaken Luxembourg in 2010," Finance Minister, Simeon Djankov, announced at the opening of yesterday’s session of the Bulgarian Stock Exchange. Only Estonia is ahead of us according to this indicator. "Bulgaria also remains in the Top 5 of EU countries with the lowest budget deficit for 2010. This is a success. I work enough and the results are already visible," Djankov pointed out. According to him, the deficit for 2010 will be significantly below the expected in the revised fiscal programme, which forecast 4.8%. By the end of November the budget deficit was within 2.65% of GDP. Djankov underlined that this was due to the overfulfilment of planned revenues by the National Revenue Agency and the National Customs Agency. "The year 2010 was difficult for all finance ministers around the world. The results show that Bulgaria has one of the best fiscal policies in the EU and I believe that in 2011, the deficit will be below 3%," Djankov added. According to him, Bulgaria is coping very with its smuggling problemss. Last year, the Customs Agency seized 252,000,000 pieces of smuggled cigarettes, or about 30 times more than in previous years. Asked whether he approved of the idea that the Customs report more frequently on their performance, like the Interior Ministry does, Djankov said that the Customs Agency reported every two weeks and there is sufficient accountability. This was also evident by the results of the Customs for 2010 - 101% fulfillment of the plan.
Source: Class (07.01.2011)

For two years of crisis the concluded deals on the Bulgarian Stock Exchange (BSE) and turnover of the regulated market has dropped by about 70%, the statistics show. According to them, in 2010 were concluded just under 110 thousand deals with a total turnover of almost BGN 683 million compared to about 390 thousand deals and BGN 2.13 billion turnover in 2008. The same is the situation in the negotiated deals, listed on the unregulated market, and in 2010 were recorded only 2,575 deals for BGN 237 million. Most deals in the past year were again of Karoll - about 44 thousand, which is about 37% less compared to 2009. The top three is the same as last year and runners-up were Bechnmark Finance and Elana Trading.
Source: Dnevnik (12.01.2011)

The Bulgarian stock exchange (BSE) saw three transactions jumbling up the shareholders' structures of Railway Infrastructure Holding Co, Holding Roads and Moststroy, the infrastructure companies controlled by businessman Vasil Bozhkov. The shares that changed hands on Thursday corresponded to stakes in the three entities held by Orlin Hadjiyankov, former executive director of Holding Roads and Railway Infrastructure Holding. The deals were carried out on the over-the-counter (OTC) market and concerned the sale of 19.13% in Railway Infrastructure Holding, 5.02% in Holding Roads and 6.79% in Moststroy. The shares were sold at a price far below their current value on the regulated market.
Source: Dnevnik (14.01.2011)

Bulgarian capital market to make up for its delay “The domestic capital market was lagging behind the strong international developments in 2009 and 2010 but this year the prices of Bulgarian securities will catch up with global trends, Peter Peshev, a broker at Bull Trend Brokerage, forecast for Klassa. He expects the capital markets of Central and Eastern Europe, to which the Bulgarian market belongs, to enjoy strong investors interest in 2011. “Emerging markets will be the hit on the global horizon of stock and commodities markets,” said Peshev. According to him, the behaviour of big countries’ and economic blocs’ central banks which do not plan to withdraw cash incentives and increase interest rates is good because the fragile recovery of the global economy would stop otherwise. Karoll Capital Management is also optimistic. According to its forecast, the medium-term outlook is for an increase in the turnover of the Bulgarian Stock Exchange (BSE) and a strong growth of SOFIX this year. A clear signal that the trend on the BSE has really changed would be if the SOFIX index reports growth of more than 400 points. Emerging markets in Asia, Latin America and Eastern Europe will continue to dominate over the developed markets of Western Europe and the U.S., registering significantly higher growth rates. “The predominant trends in 2010 are expected to remain unchanged in 2011 and the period will end with indices in Western Europe and the U.S. growing by some 15-20%, and these in some developing countries surging by 60-70%,” said Katerina Atanassova, portfolio manager at Karoll Capital Management. According to the company, the interest in risky investments will continue to increase and the interest in instruments with a fixed yield will continue. The increase in base interest rates and the rising inflation will be the main factors for these developments.
Source: Class (21.01.2011)

Bulgarian paper mill Kostenets HHI will seek a 10 million euro loan from local Corporate Commercial Bank, the company said on Thursday. Kostenets HHI will use the loan to repay its debt and for working capital, the company said in a statement filed with the Bulgarian Stock exchange. The loan will be extended for a period of four years and will carry an annual interest rate of 8.0%, Kostenets HHI said, adding that it will use real estate and other assets as loan collateral. The company’s shareholders will vote to give rights to its management board to contract the loan at an extraordinary shareholders meeting scheduled for March 3.
Source: Dnevnik (21.01.2011)

Bulgaria expects to finalise the privatisation of tobacco group Bulgartabac Holding and its remaining stakes in local electricity distribution companies by the end of the year, finance minister Simeon Djankov said. The assets, together with Vazovski Mashinostroitelni Zavodi (VMZ), building firms Montazhi and Promishleno Stroitelstvo Holding, the duty-free zones of Bourgas and Svilengrad and ten other companies in which the state owns stakes of over 50% are part of the privatisation agency's 2011 sell-off programme, Djankov said on the sidelines of a parliamentary session on Friday. The agency also plans to sell another 30 companies in which the country holds below 50% this year, he added, declining to say whether the units will go private through sales on the bourse in Sofia or via auctions. A year earlier, the country's government stated that privatisation proceeds for 2010 could reach BGN 1 billion on condition that Bulgartabac's sale takes place.
Source: Dnevnik (24.01.2011)

Bulgaria’s Sofia Hotel Balkan will seek to raise up to 18.8 million euro in share and bond issues, it said. Sofia Hotel Balkan plans to raise some 17.2 million levs through issuing 4,785,360 shares at 3.6 levs each the company said in a statement released late on Wednesday. The shares will have par value of one lev each. The company also plans to issue a 20-year 10 million euro bond loan carrying a coupon of up to 10%, which is still to be approved by the company’s board of directors. The bonds are expected to have a nominal value equal to their issue price of 100 euro each. The success threshold of the issue is set at 60%, Sofia Hotel Balkan said. It gave no timeframe for the planned share and bond issues. The company’s current capital stands at 478,536 levs. Sofia Hotel Balkan was last traded on Wednesday on the Sofia bourse, when one share changed hands 49.5 levs, down 1.0%.
Source: Dnevnik (28.01.2011)

Sofia-listed Yuri Gagarin BT plans to invest over 12 million levs this year in new printing and cigarette filter making machines, the company said on Tuesday. As part of its 2011 investment plan, Yuri Gagarin BT has decided to buy a 2.95 million euro cigarette filter rods production line from Holland’s International Tobacco Machinery, the company said in a statement to the Bulgarian Stock exchange (BSE). “The purchase of the new equipment is justified by the increased demand for cigarette filter rods combined with charcoal and other specific physical-chemical features,” Yuri Gagarin BT added.
Source: Dnevnik (09.02.2011)

Bulgarian car battery maker Monbat will list its shares on the stock exchange in Warsaw or in Frankfurt in up to three months, the company's board chairman, Atanas Bobokov, told Dnevnik on Wednesday. Earlier that day, the country's financial regulator approved Monbat's prospectus, allowing it to float the shares worth BGN 39 million on a regulated market in the European Union. The company, which is already listed on the Bulgarian Stock Exchange (BSE), has not chosen yet the bourse where to trade its stock, Bobokov said. "Germany is our biggest market, and there is interest in companies like ours," according to Bobokov. Monbat's sales on the German market amounted to EUR 16.8 million in 2010, representing 23% of its total exports.
Source: Dnevnik (10.02.2011)

Bulgarian Posts has placed its first bond, of 15 million leva, in a bid to restructure debt, the postal services operator said on Thursday. The five-year secured issue with a two-year grace period is priced at three-month Euribor plus 3.63%. The debt has been placed with large institutional investors, the company added without specifying the entities. Lead manager of the offering is Raiffeisenbank Bulgaria. The securities will be listed for trading on the Bulgarian stock exchange. The funds will be used for refinancing the company’s bank loans and liabilities under leasing contracts, Bulgarian Posts explained in a statement. The state-owned operator is implementing a programme to optimize costs as since the beginning of the year the market for postal services in the country has been fully liberalized. The company’s strategy envisages closing branches in locations with less than 800 residents, which make up 30% of its network.
Source: Dnevnik (11.02.2011)

BSE-Sofia informs herewith that the Exchange has transferred through a sale contract dated 18.02.2011 the rights on the trade marks “X3” and “X3 News” along with the integrated system for information disclosure and the specialised web site to Financial Market Service EOOD, 100% privately owned by BSE-Sofia. The entire notice is available in English at X3News.
Source: Banker (21.02.2011)

Bulgaria aims to sell bourse stake by year-end Bulgaria plans to sell its majority stake in the Balkan country's stock exchange by the end of the year or early 2012 in a bid to boost its fledgling capital markets, its finance minister said on Monday. The low-liquidity exchange, controlled by the finance ministry, became a public company this January in a move to increase transparency and attract a foreign investor for the government stake. Simeon Djankov said five companies had already expressed interest to buy the finance ministry's stake of 50.05 percent and had held talks with the bourse's management. 'We are preparing to seal a deal with a strategic investor if not by the end of the year, then early next year,' Djankov told. He declined to name the prospective bidders but said three of them were European Union companies and two were from outside the EU. He said the ministry would decide by June on the sale procedure. (Reuters)
Source: money.bg (22.02.2011)

Oil fever is shaking the savvy Bulgarians. Bulgarians trade like crazy in oil through the world stock-exchanges due to the price hike in oil products after the political crisis in Libya. A Brent barrel hit the price of US$120 yesterday. The deals with oil have increased twofold since the beginning of the unrest in Libya, officials from the Bulgarian trade platform Trader.bg inform. Trader.bg registered 1,320 deals only on Wednesday compared to 520 on the same date in January 2011. Part of the players buy oil products as their price is expected to grow. The most daring prognoses are that the price of a barrel of crude will rise above US$200. Other players sell oil and oil products as they reckon that the markets will soon calm down and the prices will start falling. A lot of people who usually trade in gold and currencies have now focused on oil trade. The number of oil deals on February 23, 2011 is by 34% more compared to all deals at the Bulgarian stock-exchange on the same date of the previous years.
Source: Standart (25.02.2011)

European stocks plunge after Moody’s cut Spain’s credit rating; the red wave hits BSE as well European stocks plunged yesterday after the international rating agency Moody’s downgraded Spain’s credit rating from Aa1 to Aa2 and the red wave hit the Bulgarian Stock Exchange (BSE) as well. Stock exchange indices reacted instantly to the news which once again ignited the fuse that the debt crisis might spread in the Eurozone. Moody’s justified its decision by saying that Spain’s plans for rehabilitation of its banking sector will cost more than its Government’s current projections and will burden its budget with additional debt. According to the rating agency, the restructuring of banks will cost ˆ40-50 bn. Moody’s even warned that a further downgrade is possible. Madrid was surprised by this downgrading. According to the Finance Ministry, Moody’s decision was surprising since it came before Bank of Spain announced the official figures for the recapitalisation of Spanish banks. The agency has taken into consideration neither the reduction of Spain’s deficit in 2010, nor the social package of the pension reform in the country which guarantees the stability of public finances, read a statement of the Finance Ministry. The other bad news which dragged down indices came from two leading global economies. Germany, which is the main source of capital for financing the stabilisation funds in the single monetary union, reported a serious decline in its trade surplus at the beginning of 2011. Its trade surplus stood at ˆ10.1 bn in January, down from ˆ11.9 bn in December 2010. London's FTSE 100 declined during the day by nearly 1% to 5878 points, in Paris the CAC 40 reported a drop from 0.5% to 3975 points and the blue chip index DAX in Germany lost 0.7% down to 7081 points. The Euro also weakened against the US dollar but at the end of the day managed to limit the drop from 1.5% to 0.6% and the exchange rate was 1:1.3833. Indices on BSE remained in the red. The blue chip index SOFIX slumped by 0.24% to 445.78 points, BG40 lost 0.27% and fell to 131.26 points, BGREIT fell by 0.77% to 50.55 points and the decline in BGTR30 was 0.75% to 357.71 points.
Source: Class (11.03.2011)

BSE to seperate shell companies for trading on a new market "The Bulgarian Stock Exchange (BSE) will move non-liquide companies to a separate market segment," announced Vassil Golemansky, Executive Director of the stock exchange operator. He further explained that the new market would again be managed by the BSE. Seperating companies with less liquidity will be useful since their market information will be released alone, apart from the records of other companies. Publishing their data on another website is also being considered. "Thus, the information for both markets will not be mixed," said Ivan Takev, the second Executive Director of the Stock Exchange. The measure has two objectives. First, non-liquid companies will retain their status of public companies and their delisting will not be considered, as this happened last year. And second, they will not be mixed with the liquid companies which meet the BSE criteria for public offering of shares. Furthermore, as part of the measures aimed at strengthening the market, BSE will change the names of the different market segments introducing more clear and attractive descriptions. The entire process is related to changes in the rules of the Bulgarian Stock Exchange, explained BSE officials. According to them, introduction of new criteria for the participation of companies offering shares on the different market segments can be expected. Georgi Balgarski, a member of the Board of Directors of BSE, said that the Stock Exchange had examined the financial reports of 1,000 companies and out of them 20 potential issuer of shares had been selected. The stock exchange operator is currently negotiating with them.
Source: Class (18.03.2011)

Ivan Takev, CEO of BSE-Sofia JSC: The 20% growth this year indicates that BSE becomes more stable - Mr. Takev, after the large volume of sales on world markets because of the crisis situation in Japan, the indices of the Bulgarian Stock Exchange also declined. What are your expectations for the development of the world and the domestic capital market in the coming months and which factors will mostly affect the fluctuations of indices? - Indeed, as soon as the global indices marked one of the largest daily slumps, the indicator of the Bulgarian Stock Exchange – Sofia JSC, Sofix fell by a bit over 2%. Naturally, some parallel could be sought between the crisis events in Japan and the situation on the Bulgarian equity market. In my opinion, the difference is that the decrease in our country was rather accidental. The large drop in indices was caused by the large volume of sales of some large hedge-funds which have no investments in Bulgaria. Certainly, those who decided to sell after the disastrous events in Japan were most likely frightened local investors. As regards the Bulgarian capital market, I hope its positive start that has been registered since the beginning of the year will continue until the end of 2011. We observe higher volumes and since the beginning of the year we have registered a positive growth of 20%, despite the correction from last week. I hope the increased investor's interest will not be lost and this will naturally affect the liquidity of the Exchange which will begin to stabilise. - BSE has selected 20 companies which could become public. In which sectors are those companies and are they interested in their business to become transparent? - We are not focused on definite sectors, but on certain companies being considered perspective by us. Therefore, it makes no sense to talk about them as a future public company. The sectors are very different, including: trade, the light, food and chemical industries and others. Again, I would like to emphasise that we do not consider industries, but specific companies. - Three months after the official launching of stock sales on BSE-Sofia JSC, what is the demand rate and what are your expectations for the results of this listing? - Trade is fairly active and I would say that it is satisfactory. Capitalisation rate of the Stock Exchange is just over BGN 17 mln and compared with other companies of the same size, it is developing very well. For example, as of the beginning of next week, the Exchange will also enter one of the indices (BGTR30) which is an indicator of its status. - Finance Minister Simeon Dyankov commented recently that the Bulgarian State aims at selling its basic package of stocks on BSE by year's end or at the beginning of 2012 in order to increase the liquidity of the Bulgarian capital market. Is there any interest on the part of strategic investors in the purchase of its share? - For the time being, we cannot say whether there is any investor's interest in the basic package of the Bulgarian State offered at the BSE-Sofia JSC because the very procedure has not been announced yet. The moment this happens, it will be clear which operators and investors could be expected to take part. - You mentioned trading fees as a major revenue source. At the beginning of the year, the new tariffs became effective. To what extent their increase will affect the proceeds of the Exchange? - I would not use the word "increase" since there is a reduction in the variable trade component, despite the introduction of the minimum fee for trading. We have sought to determine such percentages so as to avoid any increase in the absolute amount of the revenues of the Exchange at the expense of investors. The reason for this change was aimed at the reduction of the number of small transactions since 90% of them registered losses for the Stock Exchange as a result of their costs. The final objective is contracts to be consolidated and this process is currently underway. Now we can see that almost no tenders for 10 or 20 contract items are offered, while almost all of them are auctioned for over a few hundred pieces. This, at any price level, sets up a guarantee that the contract can be performed, thus creating liquidity. - What are the BSE top priorities for this year and to what extent has the strategy of 2010 been realised? - The top priorities are defined in the strategy and we continue hammering out the points that we failed to finish then, both independently and jointly with other institutions. I hope that very soon "the Central Depository" would be able to provide the changes in the information systems at the level of clearing and settlement - something extremely important for all market participants. Êúì ñòàòèÿòà íÿìà êîìåíòàðè. Íàïèøåòå ïúðâèÿ.Äîáàâè êîìåíòàðÂñè÷êè ïîëåòà îòáåëÿçàíè ñ * ñà çàäúëæèòåëíè Name Comment Anti-spam code Get a new code Ìîëÿ âúâåäåòå áóêâèòå îò êàðòèíêàòà. ÂðåìåòîSofia Sofia Paris London Frankfurt New York Moscow  ìîìåíòà7 C° " /> Äíåñ 21.3.2011 7C° " /> Tuesday 22.3.2011 1|6C° " /> Wednesday 23.3.2011 -1|7C° NewsflashStrike Committees of Unionist Structures of Railway Workers to Consider Joint Actions 17 Feb 15:43 Economy Minister Expects 5-10 Per Cent Growth of Tourism in Summer 17 Feb 15:41 Prime Minister Accepts Resignation of State Agency for National Security Chairman Yovchev 17 Feb 15:37 Parliament Stiffens Penal Sanctions for Cruelty to Animals 17 Feb 15:35 Some 200 Teachers Teach in 136 Bulgarian Schools Abroad 29 Jul 15:04 A Week at a Mountain Farm During the Summer Hollidays 28 Jul 15:02 Âàëóòíè êóðñîâå1 BGN = 1.00000 BGN 1 EUR = 1.95583 BGN 1 USD = 1.36972 BGN 1 GBP = 2.19006 BGN 1 CHF = 1.30502 BGN 1 Gold = 1496.41003 BGN 100 JPY = 1.49494 BGN Most readReuters: Oil prices will increase dramatically because of the military operation in Libya 20 Mar 19:36 MEYS to regulate part-time learning in the 11th and 12th grade 20 Mar 19:21 Fluttering music 20 Mar 13:51 Borissov: The military operation had to be carried out when our medics were detained 20 Mar 18:11 Lukoil and Petrol to fill up with fuel the cars of the state administration until the end of 2012 20 Mar 17:29 Every second Bulgarian between 18 and 25 years of age believes marriage is obsolete 20 Mar 15:51 Advertise| Contacts © 2011 - Âñè÷êè ïðàâà çàïàçåíè
Source: Class (21.03.2011)

The Bulgarian Stock Exchange (BSE) has become the object of intense interest and at least candidates have already held preliminary talks to become strategic investors in the bourse regulator, finance minister Simeon Djankov told journalists on Tuesday. BSE will have a strategic investor by the end of the year, but negotiations would not be conducted by the Finance Ministry, Djankov said. A week earlier, however, BSE board chairman Asen Yagodin, said it was the finance ministry that would be in charge of talks with prospective investors. The investor could be one of the major bourse operators in Europe, he said on March 16. (dnevnik)
Source: Monitor (23.03.2011)

Bulgaria to allow Silver Fund to invest in equity, bonds Bulgaria has decided to entitle the Silver Fund, a structure set up as a reserve fund for the public pillar of the pension insurance system to compensate for the extra costs of aging, to invest in equity and bonds of local companies, deputy finance minister Boryana Pencheva said on Monday. The proposed legislative changes will be drafted by a working group, she said. The financial scheme, set up in 2008, was intended to accumulate concession and sell-off proceeds, to be managed actively to ensure state pensions payouts after 10 to 15 years. The fund has so far amassed resources of BGN 1.7 billion, a scanty BGN 57.2 million of which was collected for the full 2010. The entire resource is deposited with the Bulgarian National bank (BNB), although the Silver Fund is allowed by law to invest in obligations of companies in the European Union and in third countries. For two years, however, its management board has failed to pick a contractor to channel the money into such instruments.
Source: Dnevnik (29.03.2011)

Sopharma Properties, the real estate investment trust (REIT) of Bulgarian pharmaceuticals maker Sopharma, plans to increase its capital to BGN 12.87 million, the company said in a filing with the Bulgarian Stock Exchange (BSE). The REIT will issue 1.17 million new shares with a nominal value of BGN 1 and an issue price of BGN 2 apiece. One old share gives one right, while 10 rights entitle to the subscription for one new share. The capital hike, approved at a meeting of the company's board of directors on Monday, will be considered successful if at least 50 per cent of the shares are subscribed for. Sopharma Properties has hired investment intermediary Sofia International to handle the issue.
Source: Dnevnik (12.04.2011)

Bulgarian meat producer Mekom placed for trade its preferred stock on the Bulgarian Stock Exchange (BSE) on Tuesday after its board of directors registered the shares on the bourse's A segment of the unofficial equity market. The issue of 284,775 shares, which have a nominal value of BGN 1 each, guarantee an annual dividend of BGN 0.18 apiece. Despite the relatively high dividend rate, however, the company managed to raise a scanty 2% of the amount expected to be secured through the share issue which took place in January 2011. Mekom then collected only BGN 285,000, far below the BGN 14 million it strove to attract. Initially, the company planned to pay a dividend of BGN 0.12 a share but later decided to increase the size. The company had intended to channel the proceeds from the issue into the upgrade of its pig farm near the northeastern city of Silistra.
Source: Dnevnik (13.04.2011)

Bulgarian pharmaceuticals maker Sopharma has acquired Belorussian pharmacy chain Tabina through its Latvian unit Briz, it said in a statement to the Bulgarian stock exchange on Wednesday. Sopharma has bought 99% of Tabina's capital, which has 14 pharmacies operating under the Doctor Do brand. Tabina, which has a staff of 75, ended 2010 with a turnover of EUR 3.78 million. In January 2011, Sopharma took over via Briz another Belorussian pharmacy chain, Interfarm, which runs 19 pharmacies. Briz now operates a network of 33 pharmacies in the eastern European country, which have an annual turnover of EUR 7.5 million, according to the statement. "This allows the Breeze to become the third largest privately-owned pharmacy in Belarus," Sopharma said.
Source: Dnevnik (14.04.2011)

With regard to the provisions of Art. 8 of Ordinance #16 of FSC, on 15.04.2011 no financial instruments may be pledged as collateral for margin trades and short sales and may be sold short
Source: BG Sever-Pleven (15.04.2011)

Sofia-BT, a subsidiary of Bulgarian tobacco group Bulgartabac Holding, reported a 38.2% annual jump in exports in the first half of 2011, its financial report filed with the Bulgarian Stock Exchange shows. The factory's overall sales soared by 58% to 1.94 billion pieces, with the share of exported cigarettes shrinking to 81% in the period from 93% in the first quarter of 2010. The Middle East remained the company's top foreign market in the first quarter, with sales in countries in the region nearly doubling on an annual basis. Sofia-BT, however, registered a decline in exports to the Far East and the Balkan states. In money terms, sales abroad came in at BGN 27 million, an annual rise of almost 50%, while total sales amounted to BGN 32.6 million, up 63%. The company ended the January-March period with a net profit of BGN 1 million versus a loss of BGN 160,000 a year earlier.
Source: Dnevnik (26.04.2011)

Bulgarian Corporate Commercial Bank (CCB) has acquired an 8.24% stake in local fuel distributor Petrol, the lender said in a statement shortly before the start of the Easter holidays. The bank bought nine million shares in Petrol in a repo deal, following a similar share transfer transaction on the over-the-counter market of the Bulgarian Stock Exchange. According to Central Registry data, however, CCB has bought the stake from one of Petrol's owners, Mitko Sabev. The move is the second repo deal struck by Sabev for the last few months after the businessman arranged such a transaction with Central Cooperative Bank between December 2010 and February 2011. In December 2010, the Central Depository published information saying that Central Cooperative Bank had bought over 5% in Petrol from Sabev, who, however, decided in February 2011 to buy back its shares from the bank. The repo deals in February and April were carried out at one and the same price of BGN 1.3 per share.
Source: Dnevnik (27.04.2011)

Bulgarian hardboard maker Fazerles plans to distribute as dividend its 2010 profit of 103,000 levs, the company said on Monday. Fazerles shareholders will vote on the proposed dividend payment on June 15, the company said in a statement filed with the Bulgarian Stock exchange (BSE). Fazerles' share capital is distributed into 515,000 shares of 1.0 lev in par value each, according to the data of the country's trade registry. The company paid no dividend in 2009 after distributing a gross dividend of 1.0 lev per share for 2008. Silistra-based Fazerles, which has an annual output capacity of over 18 million square metres of hardboard, ended 2009 with a net profit of 269,000 levs, 95% down from 2008. (SeeNews)
Source: Dnevnik (10.05.2011)

Bulgaria will offer for sale stakes in 26 companies in an auction on the Sofia bourse, the government’s sell-off body said on Monday. The list includes a 100% stake in construction company Montazhi, a 100% stake in Free Zone - Svilengrad, a 46.4% stake in Free Zone - Plovdiv and a 46% stake in Transit Trade Zone - Varna, the privatisation agency said in a statement. The government will also put up for sale a 19% stake in Duty Free Zone - Burgas and a 7.6% stake in private equity company Zografski. The stakes will be offered between the sixth and the fourtheenth working day following the publication of the tender notice in the State Gazette, the statement added. Montazhi was put up for sale in two previous auctions but failed to draw investor interest. This will be the government’ second attempt to sell its stakes in Transit Trade Zone - Varna and Free Zone - Plovdiv. (SeeNews)
Source: Dnevnik (10.05.2011)

The Ministry of Finance will buy 2, 000 Central Depository AD (CDAD) shares from BNB, it transpires from a central bank statement. The said shares comprise 20% of the Depository’s capital and the Ministry will pay BGN 200, 000 for the acquisition. Once the transfer is complete, Dyankov’s administration will control 41.9% of CDAD (or 44.9% via BSE-Sofia). If we add the Privatization Agency’s 1.8% stake in CDAD, it turns out the state will control a good 46.7% in the Depository. According to late 2009 stats, there is a list of commercial banks with shares in CDAD – Raiffeisenbank, Societe Generale Expressbank, DSK Bank and UniCredit Bulbank (5% each), CCB (5.1%), Eurobank (4.5%), ING Bank (3%), Cibank (1.8%), UBB (1.5%), Investbank (1.4%) and IABank (1.2%), etc.
Source: Standart (13.05.2011)

Bulgarian pharmaceuticals producer Sopharma has submitted for approval to the country's Financial Supervision Commission its prospectus for floating shares on the Warsaw Stock Exchange (WSE), the company said. The move paves the way for the launch of Sopharma's stock on Poland's regulated market, making it only the second Bulgarian dual-listed company after real estate investment trust (REIT) InterCapital Property Development. On a separate note, the company said it plans to pay out 10.56 million leva in dividend on its 2010 earnings, or 0.08 leva a share. The move will be discussed during Sopharma's shareholders' meeting, which will take place on June 29 2011. The stockholders will also vote on issuing a corporate guarantee to a bank loan taken out by REIT Sopharma Properties, the real estate division of the drug maker. On May 9, Sopharma Properties' board of directors revoked a decision taken several months earlier, which stipulated an increase in the REIT's share capital to 12.87 million leva.
Source: Dnevnik (16.05.2011)

Sofia and Bucharest consider the establishment of a common stock index The Bulgarian and the Romanian stock exchanges are discussing the establishment of a tradable, common stock index, became clear yesterday during a financial forum in Sofia. Bucharest Stock Exchange Managing Director Valentin Ionescu explained that the experience of recent years has shown that the two countries were usually put under a common denominator and the establishment of such an index would give advantage to the countries. In addition, a common platform would also position them better in Central and Eastern Europe. “There is no need for the exchanges in the region to wait for the big players to help them, if they have the potential to cooperate in a single platform,” stated Ionescu. Ivan Takev, CEO of the Bulgarian Stock Exchange (BSE), said that there were many indexes in the world, including Bulgaria and Romania, but if a common one was established just for the two countries, this would be a good signal for investors. He specified for Klassa that it was only an idea for the time being, but assured that such a measure would be in the interest of our country because Bulgaria needed more attention from foreign investors. Ionescu pointed out that Romania was very interested in the purchase of the state-owned share in BSE-Sofia. Dimitris Karaiskakis, Chief Operations Officer of Hellenic Exchanges Group, commented that the combination of a stock exchange and a central depository was very good and would cause a great interest. “We are also watching closely the situation and we are interested,” he added. The representative of Warsaw Piotr Borowski was more moderate and stressed that the privatisation of BSE had a long history. He assured that the Polish Stock Exchange was following the development but was focused on developing its own market for the time being.
Source: Class (18.05.2011)

Sofia Stock Exchange has been the top performer in South East Europe since the beginning of the year, according to a Financial Times ranking. The region's top performer is Bulgaria with a rise of 29% in USD terms and 22% in local currency. According to FT data, that's the world's best in USD terms and second only to Zambia in local currency. According to the article the markets in the region have benefited, first of all, from the coherent international support extended by the European Union and the International Monetary Fund from 2008 onwards, with programmes for Hungary, Romania, and Serbia. These combined with the so-called Vienna Initiative, an informal grouping of multilateral agencies and international banks active in eastern Europe, which successfully put pressure on the banks not to pull out of the region. Next, while it was already clear by mid-2009 that the region would avoid financial meltdown (and that Europe had much bigger difficulties in Greece, Ireland and Portugal), it has taken time for any confidence to return. But at least conditions aren't getting worse – so bottom-fishing investors smell opportunities. Also, unlike the EU's Mediterranean problem countries, public and private debt levels are generally low – around 75 per cent of GDP combined for Romania and even less for Bulgaria.
Source: Other (18.05.2011)

Bulgarian Stock Exchange to auction the minority stakes of the Energy and Utility Companies The minority stakes of the Electricity System Operator (ESO) EAD (SPJSC), the state-owned Maritsa Iztok 2 TPP (Maritsa East) and the electricity distribution companies (EDC) could be auctioned through the Bulgarian Stock Exchange (BSE), said yesterday the Minister of Economy, Energy and Tourism, Traicho Traykov, who jointly with Prime Minister Boyko Borissov and Deputy PM and Finance Minister Simeon Djankov attended a meeting at the Council of Ministers with the trade unions of the energy sector. Traikov added that the listing of packages of these companies on the stock exchange will generate more state revenue, thus increasing the BSE liquidity. He refuted the allegations for the forthcoming privatisation of large shares of the state-owned Bulgarian Energy and Utility Companies. Our country is also elaborating a demonstration project for carbon dioxide storage in Bulgaria. Two sites have been designated for the construction of a similar technological facility. The first is located 100 km west of the Mini Maritsa Iztok EAD (SPJSC), while the other is based in Central Northern Bulgaria, explained Traikov. At the moment, the project is at its pre-examination phase that will eventually determine the type of funding schemes under the EU grant programmes which will be used. Our country will demand a further ˆ 450 mln in compensation for the premature closure of the four small units of NPP Kozloduy. The funds will be requested for the next programming period 2014-2020, explained Traikov before BNT (Bulgarian National Television). In his words, the resources are actually necessary for the decommissioning of the reactors and turning the site into a green field.
Source: Class (31.05.2011)

BSE-Sofia might well get privatized by CEE Stock Exchange Group – a conglomerate of the capital markets in Vienna, Budapest, Ljubljana and Prague. This is what CEE Stock Exchange Group’s executive director said in an interview with CNBC.com. In his words, once privatization procedures commence, there would be negotiations for the state-share in BSE-Sofia. The Group was also interested in acquiring the Romanian stock exchange.
Source: Standart (02.06.2011)

Bulgaria picked local First Financial Brokerage House to manage the sale of its 33% stakes in two units of power distributor E.ON Bulgaria, the Privatisation Agency said on Thursday. FFBH outbid Sofia-based Bulbrokers, which ranked second, and local Central Cooperative Bank (CCB), which was placed third, among the nine candidates that had filed binding offers in the tender, the government's asset-selling agency said in a statement. The brokerage contract with FFBH will be signed within two weeks, it added. The financial intermediary should manage the sale of 49,533 shares in E.ON Bulgaria sales and 43,494 shares in E.ON Bulgaria Grid through a public offering on the Bulgarian Stock exchange. Germany's E.ON owns 67% of E.ON Bulgaria, which has one more unit, E.ON Bulgaria Trading. Bulgaria is also seeking managers to sell its 33% stakes in two units each of power distributors CEZ Bulgaria and EVN Bulgaria. (SeeNews)
Source: Dnevnik (10.06.2011)

The shareholders of Bulgarian ship repair yard Odessos have approved the company's decision to pay 352 000 leva in dividend for 2010, or 0.60 leva a share, the plant said in a statement to the Bulgarian Stock Exchange's information service X3 News on June 11 2011. The shareholders also decided to set aside the remainder of the plant's 2.3 million leva net earnings for 2010 as undistributed profit. The dividend will be paid on September 11 2011 to shareholders registered in the Central Depository 14 working days after the general meeting. In 2010, Odessos distributed slightly over two million leva in dividend on its 2009 results, or 3.5 leva a share. The plant recorded a revenue of about six million leva in the first quarter of 2011, up 34 per cent in annual terms. (Dnevnik)
Source: Other (14.06.2011)

Bulgarian financial services company Expat Capital has bought a 20 per cent stake in local financial and industrial group Eurohold Bulgaria in a deal carried out on the Bulgarian Stock Exchange, the bourse operator said in a statement on June 20 2011. The stake was sold at a price of 26.4 million leva, or 1.215 leva a share, Expat Capital's chief executive and board member Nikolai Vassilev told Dnevnik. The interest was sold by Eurohold's controlling shareholder Starcom Holding and related entities. "The deal was fully funded with own capital in a time extremely favourable for acquisitions on the stock market," Vassilev said. Following the deal, Starcom will retain a stake of 51 per cent in the company.
Source: Dnevnik (21.06.2011)

Armeec Insurance Company will launch its shares on the Bulgarian Stock Exchange next year, the company announced. Moreover, the company plans to expand its activities in Russia, Republic of Macedonia and Ukraine. By the end of the year Armeec will acquire 100% of the capital of a Russian insurance company, explain CEO Rumen Georgiev. The parameters of the Russian company are similar to ours, he added. Armeec Insurance Company celebrated its 15th anniversary. The look back into these 15 years makes us proud, Rumen Georgiev said. Armeec holds 11% of the insurance market in Bulgaria, ranking it 3rd among insurers for 2010. In recent years, the insurer reported growth despite the overall decline in the market caused by the crisis. Data from the Financial Supervision Commission show that the first three months of 2011, compared with same period of 2010, Armeec has again achieved a higher premium and its performance on all types of businesses exceeds the market estimates.
Source: Standart (22.06.2011)

KCM reported 43% growth in sales to BGN 531 million for 2010 KCM Plovdiv reported 43% sales growth YoY to BGN 531 million for 2010, show the company's report, published by BSE. However, the company reported a loss of BGN 8.2 million last year, compared to a net profit of BGN 603 thousand for 2009. The company reported net losses from foreign exchange differences of BGN 22.9 million in 2010 compared to just BGN 2.6 million for 2009. The reason is the revaluation of loans in U.S. dollars and Japanese yen, which currencies have risen against the BGN and the EUR in 2010. Apart from the recent losses in 2010 to the amount of BGN 8.2 million, the company has accumulated losses of BGN 96.6 million in previous years. Depreciation costs in 2010 are BGN 21 million, in 2009 they were BGN 20 million. The average number of employees in 2010 is 1360 people from 1347 people in 2009. 33. 66% of the revenues are from sales of zinc, 40.2% - from sales of lead and 9.28% - from sales of precious metals. In 2010 the company produced 65,415 tons of lead, 72,309 tons of zinc, 38.611 tons of silver and 195.008 kg. of gold. KCM reported 72% increase in prices of coke (enriched coal) in 2010 to USD 449 per ton. The main shareholder with 94.5% of the capital is KCM 2000 JSC. Long-term liabilities on bank loans are BGN 140 million at the end of 2010, compared to BGN 100 million a year earlier, or an increase of BGN 40 million. Company is due BGN 9.2 million loans from its main owner KCM 2000. 93% of the produced lead and 92% of the produced zinc are for export. Raw materials are purchased from abroad, 85% of the lead resources and 93% of the zinc resources are imported.
Source: investor.bg (23.06.2011)

Launching of a second capital market for trade in less liquid companies is underway In 2012, a second regulated capital market will be launched in Bulgaria, mainly for trade in less liquid companies. The idea is stipulated in the Strategy for Development of the Bulgarian Stock Exchange (BSE) – Sofia by the end of 2012. It aims at creating a market for emissions of low-liquidity and at optimising the segmentation of BSE - Sofia. All share emissions that do not meet certain minimum liquidity criteria are expected to be transferred to this market. Thus, only actively traded companies will remain on the main market of BSE - Sofia. Such a division will significantly enhance the quality of the statistical information for the Bulgarian capital market and will avoid the distortions created by companies with non-market behaviour, experts say. These ideas were discussed yesterday at a meeting of the management of the Bulgarian Stock Exchange, the Capital Market Commission, at the National Council with the Bulgarian Industrial Capital Association (BICA). Ivan Takev, Executive Director of BSE told Klassa that the idea is for another regulated market to be set up. “The overall concept, however, is still not clarified and the criteria have not been specified,” said Takev. Takev confirmed that the idea was for less liquid companies, which have created a lot of controversy in the last two years, to be traded on the new market. “It is possible that other companies will be listed for trade as well but everything depends on the criteria that we will determine,” added the Head of BSE. The proposed changes were approved at the meeting of BICA but experts shared the opinion that the companies transferred to the second regulated market should enjoy certain benefits such as lower taxes and to be exempted from the obligation to provide information to the extent required on the main capital market.
Source: Class (05.08.2011)

A stake of 53.8% in Bulgarian brewery Lomsko Pivo was traded for a total of 1.9 million levs on the unregulated segment of the Bulgarian stock exchange on Thursday, bourse data indicated. A total of 1,819,794 shares changed hands in one transaction at a price of 0.7 levs per share, and another 599,872 shares were traded in four transactions at a price of 1.043 levs per share, bourse data showed. The parties to the deals were not disclosed.
Source: Darik Radio (19.08.2011)

Bulgaria's Financial Supervision Commission (FSC) has appealed an order by the Supreme Administrative Court (SAC) to allow for trade shares in renewable energy company Energoni on the Bulgarian Stock Exchange (BSE). On August 9, SAC overturned a preliminary decision of the financial regulator to prohibit Energoni from launching a 547 million share issue on the bourse, with FSC citing concerns about the assessment of the company's patent for a wind farm construction method. Following the imposed ban, Energoni has traded only a small portion of its shares on BSE. The larger deals with the company's stock were conducted on the over-the-counter segment of the BSE, which prompted an investigation from the State Agency for National Security into Energoni over suspicion of money laundering. After SAC's decision, the bourse is obliged to admit for trade the entire share issue of Energoni on the regulated market. FSC's appeal will be heard by a five-judge SAC panel, which will make the final decision on the issue. Currently, Energoni has a registered capital of 547.563 million leva, while its market capitalisation is estimated at 3.285 billion leva, which is more than a quarter of the total capitalisation of the BSE.
Source: Dnevnik (22.08.2011)

Bulgarian chemical company Polimeri said on Tuesday it has set up a new wholly-owned unit under the name Polimeri Invest. Polimeri Invest, which was registered on August 12, is based in the northeastern town of Devnya, like its parent company, Polimeri said in a statement filed with the Bulgarian Stock exchange (BSE). Polimeri Invest is focused on the manufacturing of chemical products and has a share capital of 25.6 million levs, data from the commercial register showed.
Source: money.bg (24.08.2011)

Bulgarian engineering company Energoremont Holding said on Thursday it turned to a consolidated net profit of 2.2 million levs in the first half of 2011 from a loss of 155,000 levs a year earlier. The company’s total revenue in the January-June period rose by an annual 29.4% to 19.9 million levs, Energoremont Holding said in a statement filed with the Bulgarian Stock exchange (BSE).
Source: investor.bg (26.08.2011)

Bulgaria’s financial regulator said it gave the greenlight to state-owned Bulgarian Development Bank (BDB) to list for trading a 20 million euro bond issue. The issue consists of 20,000 bonds with a par value of 1,000 euro each, the Financial Supervision Commission (FSC) said in a statement. The bonds, which carry a 4.8% annual coupon, will mature on December 30, 2015.
Source: Banker (01.09.2011)

Bulgarian cables and conductors manufacturer Gamakabel will seek to increase by 4.0 million euro a 10 million euro loan from local First Investment Bank, it said on Thursday. The company's shareholders will vote on October 13 on a proposal to seek an increase of the loan while keeping the basic terms unchanged, Gamakabel said in a notice filed with Bulgarian Stock exchange where it is listed. Gamakabel took the loan in 2009 to finance its investment programme and use part of it as working capital.
Source: Dnevnik (02.09.2011)

The Bulgarian government said on Wednesday it has allowed UK company Melrose Resources to use a seismic vessel in the country's offshore waters in the remainder of 2011. The Edinburgh-based company will be able to use the Singapore-flagged Geo Natuna to conduct 3D seismic exploration survey of the Galata block, the government said in a statement. The permit is granted in connection with Melrose Resource's oil and gas exploration activities in Bulgaria's Black Sea territorial waters, the statement said.
Source: mediapool.bg (08.09.2011)

CEZ could buy the 33% state stake from the State The Czech power generation company CEZ may purchase the government stake of its Bulgarian subsidiaries, declared yesterday, Ales Damm, Management Board Chairman of the CEZ Distribution Bulgaria AD. The company owns 67% of the electricity distribution companies (EDCs) in Sofia, Sofia district and Pleven, for which it paid some ˆ 281.5 mln in 2004. Bulgarian GERB (Citizens for European Development of Bulgaria) government has contemplated to sell the remaining 33% of the EDCs CEZ and EVN at the Stock Exchange, while both companies have a right of first refusal on the purchase of the state stock. In fact, there is an ongoing tender procedure for the sale of the same package of shares of the E. ON Bulgaria, which owns the electricity network in northeastern Bulgaria. We must respect the decision of the Bulgarian state, which wants to privatize the minority stake, indicated Damm. For us, it is better to have a strong partner, such as the State because, added he. This decision is not the most convenient for us, but we respect it. Besides, business groups from Bulgaria or from the Middle East must reveal interest in purchasing a stake of the company, added Damm. CEZ also completed ahead of schedule the replacement of 57,000 m of damaged cables worth BGN 1 mln as a result of thefts in the Sofia residential district "Hippodrome". The company's teams managed to complete the replacement 5 days ahead of schedule. Thus, the safety and reliability of the power supply to some 215,000 households was restored.
Source: Class (09.09.2011)

Bulgarian National Bank asked Investbank to increase its capital by BGN 50 million. The bank said that a general meeting of shareholders is to be held on October 19, 2011, as this issue is included in the agenda. In connection with the complicated global financial and economic environment worldwide regulators set conditions for banks to increase their capital as an additional guarantee. Bulgarian banks are in good financial condition, their loans are secured by real assets. At the same time, we must continue to maintain banking standards at high levels. Investbank takes appropriate action as required by BNB, and plans to increase its capital by BGN 50 million. Investbank reported BGN 6.77 million loss for first half of 2011, as its assets on June 30, 2011 were BGN 1.26 billion. Bonds issued by the bank are traded on the BSE.
Source: investor.bg (19.09.2011)

FIB to issue debt securities worth BGN 2 bn First Investment Bank (FIB) will be able to issue debt securities worth up to BGN 2 bn. This will become possible as a result of changes in the Statutes of the Bank, included as the primary issue in the notification for convening of a general meeting of shareholders on October 24, published by the Bulgarian Stock Exchange. The Bank management will issue the debt instruments for a 5-year period. On the question of Klassa daily what necessitated these changes and for what the funds will be used, FIB replied that this was not a new decision, but a deadline extension of an existing decision. The meeting's agenda also includes changes in the Bank Supervision Department. The hitherto members Todor Breshkov, Nedelcho Nedelchev and Kaloyan Ninov will be dismissed from service on January 24, 2012. It was proposed that their vacant posts at the Bank Supervisory Council (BSC) should be occupied by Evgeni Lukanov, Yordan Skorchev and Maya Georgieva. The financial institution indicated that the reason for the reshuffles was the fact that at the beginning of next year the mandate of the hitherto BSC members expires. The general meeting of shareholders will also vote on the actual amount of the remuneration for the members of the Bank Management and Supervisory Board. According to the unconsolidated financial report of the bank for the first six months of the year, its profits increased by 35% on an annual basis up to BGN 20 mln. Its good fiscal performance is mainly due to the growth of BGN 7.09 mln in the net income collected from fees and commissions and as a result of the hike of BGN 21.5 mln of the net interest income. At the last general meeting, the shareholders of the financial institution decided not to pay dividends and to calculate no other deductions from the profits of 2011. In fact, it is already known that FIB financed completely the transaction on the purchase of the bankrupt Kremikovtzi metallurgical plant, providing the amount of BGN 316 mln. FIB was elected as the Best Bank in Bulgaria by the Euromoney magazine and received the prestigious award for market share in the rankings for annual bank awards dubbed Bank of the Year Award 2010.
Source: Class (20.09.2011)

Bulgarian renewable energy company Energoni, which made headlines with the dubious assessment of its patent for a wind farm construction method, plans to raise its capital by one billion leva, the invitation for its shareholders' meeting shows. The shareholders will meet on October 28 to discuss the capital hike, which, if approved, will see its capital grow to 1.547 billion leva from 547 million leva currently. All details related to the transaction will be determined by the company's board of directors once the shareholders give them a mandate at the assembly. The move first needs the approval of the Financial Supervision Commission (FSC). The previous capital hike to 547 million leva was cleared by the financial regulator, but several months later, Ralitsa Again, then deputy chairwoman of FSC, acted to block Energoni's access to the local stock market. In late August, however, a five-member panel of the Supreme Administrative Court lifted the ban on Energoni's stock.
Source: Dnevnik (27.09.2011)

The management board of Bulgaria's financial and industrial group Eurohold Bulgaria approved on September 26 plans to float its stock on the Warsaw Stock Exchange, the company said in a statement. The company, which is already listed on the Bulgarian Stock Exchange, has already requested regulatory approval to trade on the Warsaw bourse. The company's management has conducted a review of Poland's capital market, the terms for floating on different segments of the market and the benefits the company could get from listing, the statement said. Eurohold has decided to float all its existing 108 643 712 shares included in its registered capital. Three weeks ago, Eurohold said it would reduce the issue price of the new shares to be sold as part of its upcoming capital hike to 1.5 leva apiece from 1.7 leva proposed earlier. The company intends to issue 36.2 million new shares as part of the transaction, seeking to raise 54.3 million leva in fresh capital. The time frame of the capital hike is yet to be disclosed, but the statement for the Warsaw listing suggests that it would be carried out after the floatation in Poland. Originally, Eurohold had planned to carry out the capital increase simultaneously with the listing in Warsaw.
Source: Dnevnik (30.09.2011)

MKB Unionbank successfully placed its first bond emission for EUR 15 million. The maturity period of the emission is 3 years, the interest rate is fixed at 5.75%. The funds will be used for financing the main business of MKB Unionbank. Leading manager is Raiffeisenbank Bulgaria. The emission was booked privately by large institutional investors. The emission was overbooked by EUR 1.735 million. The bonds will be listed on BSE for secondary trade.
Source: Dnevnik (07.10.2011)

London companies will be invited to participate in the privatization of state shares in companies on the stock exchange. This will happen during the conference on capital markets The European Exchanges Summit on 17-18 October 2011 in London. The management of BSE in the face of Ivan Takev, Vasil Golemanski and Georgi Bulgarski are said to hold meetings with potential investors for the electricity distribution companies. It is likely that the board of directors would seek a strategic investor for the Exchange itself. During the discussions, CEO of BSE Ivan Takev will present ideas for developing markets, consolidation of markets and their regulation. BSE went through very tough times in recent years. As a result of the financial crisis regulation increased, exchanges seek consolidation and technology enables innovative marketing tools, the impact of which is still a ground for arguement among the participants in the sector.
Source: Standart (13.10.2011)

BSE to be sold in the first half of 2012 The Bulgarian Stock Exchange (BSE) will be able to sell its majority stake to a foreign bidder in the first half of next year, reported Dow Jones Newswires. "The major share of our stock market is state-owned. Our Finance Minister is firmly convinced that the GERB (Citizens for European Development of Bulgaria) government should not act as a shareholder for an extended period of time. This means that a decision has been taken on the sale of this stake to a strategic investor in the near future," stated BSE's CEO, Ivan Takev, after the meeting of the European Stock Exchanges in London. According to the expert, the operator's management has already held several meetings with potential buyers. They are definitely interested in purchasing 50.5% of the stocks. The sale scheduled for the first half of next year is feasible, stated Takev. These comments were delivered amid the raging escalation of potential mergers in the world, including those of Deutsche Boerse with NYSE Euronext and the merger of BATS Europe with Chi-X Europe. Takev declined to name the potential bidders in the upcoming privatisation tender but speculations indicate that the Vienna Stock Exchange is interested in BSE. Over the years, the Greek, Warsaw Stock Exchange and other operators have declared their interest in our stock market. We remind our readers that, last year, the Bulgarian state represented by the Ministry of Finance increased its share by 6% + 1 stock in BSE for the amount of BGN 715,000 by raising the nominal equity rate. Thus, its share reached 50.5%. The Financial institution argued that the sale of the majority stake will have a positive effect on the domestic Stock Exchange.
Source: Class (19.10.2011)

Energoni JSC plans to increase its capital by up to BGN 1 billion through new shares. The shareholders of the company also decided to change the statutes under the condition that the increase is successful, so as to reflect the new capital. The company is a leader by market capitalization on the stock exchange and is estimated at over BGN 1.7 billion. However, it is not operational and its only asset is a patent to build a wind power plant worth over BGN 500 million. In the previous capital increase to BGN 547 million in 2010, the Financial Supervision Commission blocked the inclusion of the new shares on a regulated market. But the ban was repealed by the Supreme Administrative Court and since August 2011 securities are traded. Meanwhile, significant transactions with value shares Energoni were made on the unregulated market, for which the State Agency for National Security have been approached several times. To date, there are no clear results of the checks.
Source: Dnevnik (01.11.2011)

Three companies of Railway Infrastructure – Holding Company JSC, owned by businessman Vassil Bozhkov, are seeking protection from creditors. In a message the holding informs that Repair Reconstruction Enterprise Koehne JSC, Factory for Steel Constructions – Hayredin and National Research Institute of Transport Ltd. - Sofia asked the court to declare them bankrupt. The three companies have a debt of EUR 33 million to the holding and United Bulgarian Bank. In addition it has obligations to the National Revenue Agency, the Agency for Privatization and Post Privatization Control, as well as numerous suppliers. One of the creditors - UBB is trying to collect part of the debt by a bailiff. For public sale are declared assets of the three indebted subsidiaries, as candidates willing to participate in the auction may perform inspections to 3 November. Since September, the bank has blocked the accounts of four companies of the railway holding.
Source: mediapool.bg (01.11.2011)

On 29 November 2011 IHB filed its consolidated report 3Q2011 to the public, Financial Supervision Commission and BSE-Sofia.
Source: Company information (01.12.2011)

Energo-Pro, the new owner of power utility of E.ON Bulgaria, plans to boost investments in the newly-acquired company and reduce electricity losses along the grid, Irji Krushina, founder and board member of the Czech energy group, told in an interview. At the same time, Energo-Pro will monitor closely whether individual consumers comply with their obligations, he said. The transfer of ownership is expected to close in early 2012, Krushina said but declined to comment whether Energo-Pro was interested in the minority stake in E.ON Bulgaria, which is due to be sold through the Bulgarian Stock Exchange (BSE). German power utility E.ON announced the sale of its 67 per cent stake sale in the Bulgarian subsidiary on December 3 2011. Asked to comment on the continuous decline in E.ON Bulgaria's financial results in recent years, Krushina said that it was a consequence of the overall condition of the Bulgarian economy just like in all other European markets, which were undergoing complex periods of crisis. Krushina considers that Energo-Pro's experience in Georgia, where it is active in energy distribution, will be useful for its operations in Bulgaria.
Source: Dnevnik (09.12.2011)

Bulgaria’s Privatisation Agency said on Tuesday the sale on the local bourse of state-owned minority stakes in two units of EVN Bulgaria will start on December 21. Bulgaria will offer its 33% stakes in both EVN Bulgaria Elektrorazpredelenie and EVN Bulgaria Elektrosnabdiavane in a public auction on the Sofia bourse’s privatisation segment, the agency said in a statement. A total of 51,612 EVN Bulgaria Elektrorazpredelenie shares and 62,106 EVN Bulgaria Elektrosnabdiavane shares will be offered for privatisation through the bourse. EVN Bulgaria Elektrosnabdiavane has an issued capital comprising 188,200 shares with a nominal value of 10 levs ($6.8/5.1 euro) each. EVN Bulgaria Elektrorazpredelenie's issued capital comprises 156,400 shares also with a nominal value of 10 levs each.
Source: Dnevnik (14.12.2011)

State-owned stake in electricity distributor EVN Bulgaria to be auctioned An auction for the state-owned 33 per cent stakes in EVN Bulgaria Elektrorazpredelenie and EVN Bulgaria Elektrosnabdyavane will begin on December 21, 2011, the Bulgarian Stock Exchange said, announcing a decision it had made earlier. According to the auction prospectuses approved by the Financial Supervision Commission, investors will be offered ordinary shares of the two divisions of the electricity distributor and shares carrying the right to vote, the right to receive dividends and the right to liquidation proceeds upon liquidation of the company. All shares of the two divisions will be admitted to trading on the Bulgarian Stock Exchange. The shares will be offered for a period of 60 days, reckoned from December 6, 2011. If any of them remain unsold and if there is still investor interest, the deadline may be extended until all shares are sold. The offer will be officially presented to the Bulgarian investor community on December 15 by the Bulgarian Stock Exchange Sofia, EVN Bulgaria and Bulbrokers.
Source: 3e-news (15.12.2011)

EVN buys State share in its two Bulgarian subsidiaries The majority shareholder in EVN Bulgaria – Austria’s EVN AG, succeeded to purchase the State package of shares put up for sale at today’s auction on the Bulgarian Stock Exchange. The trade session did not last long – just an hour. At the end, nearly 100% of the shares of EVN Bulgaria Electricity Distribution JSC and EVN Bulgaria Electricity Supply JSC, part of EVN Bulgaria, were sold for BGN 92 mln. Thus, EVN increased its stake in the electricity distribution company by 30 75% (48,100 shares) to 97.75%, and in the electricity supply company – by 32.73% (to 61,600 shares) to 99.73%. The State had planned to get BGN 78 mln from the deal. ”The decision to participate in the purchase of these shares is a result of our presence in Bulgaria in the last seven years and confirms EVN’s long-term commitment to the energy sector,” said Joerg Zolfelner, Managing Board Chairman of EVN Bulgaria. At the opening the trade session on BSE, Zolferner commented that the day is very important for EVN not only because of the public offering of the State’s shares, but also because the company has already reached BGN 900 mln of investments in this country. According to the BSE, 98.85% of the electricity distribution company’s shares and 99.4% of the electricity supply operator’s shares were sold during the auction. The average selling price of EVN Bulgaria Electricity Distribution JSC was BGN 1,632.56, or nearly 19% more than the minimum price asked by the State. The shares of EVN Bulgaria Electricity Supply JSC were sold at an average price of BGN 156.60 per lot, or 30% above the initially asked price. “The proceeds from the sale of the minority State’s stake in EVN Bulgaria amounted to BGN 92 mln, up from the projected minimum of BGN 78 mln. However, there are still 600 shares to be sold. Thus, our initial estimates will be exceeded,” Minister of Economy Energy and Tourism, Traicho Traikov said after the meeting of the Council of Ministers.
Source: Class (22.12.2011)

EVN Bulgaria Unit Snapped Up on Bourse, BGN 93 M Raised Bulgaria has sold almost all of its 33% stakes in Austria's EVN unit in the country right after the trade with its shares on the local stock exchange started on December 21, data from the bourse shows. A total of 112,795 shares in the two companies - Electrosnabdiavane and Electrorazpredelenie - were sold, raising BGN 92.97 M, well above the government's target of BGN 78.4 M. Bulgaria offered 62 106 shares in Electrosnabdiavane and 51 612 shares in Electrorazpredelenie at a minimum price per share of BGN 120.31 and BGN 1,373.92 respectively. The average price achieved during the trade for the shares from the two companies was BGN 156.60 and BGN 1632.56 per share respectively, data showed. The remaining 923 shares will be offered for sale Thursday. Long before trading started, experts commented that the majority owner may buy out all shares right away because the terms of the tender allow that they all are offered for trade on the very first day.
Source: Darik Radio (22.12.2011)