Bulgarian American Credit Bank (BACB), 99%-owned by the Bulgarian American Enterprise Fund (BAEF), will be listed on the Bulgarian stock exchange, it was decided at a general shareholders meeting held on Monday, January 16. The other banks traded on the local bourse are Economic and Investment Bank, Central Cooperative Bank and DZI Bank. The listing will likely involve secondary offering of a minority stake in the bank. The project will be advised by CA IBCorporate Finance and HVB Bank Biochim. BACB's share capital stood at 12.746 mln levs by end-September, shows data of the Bulgarian National Bank. BACB made no official comment regarding the operation. A 2004 agreement with a bank syndicate binds BAEF to retain 75% ownership in BACB for 2 more years which means the bank will be able to offer no more than 25% to the public before the end of September. BACB was ranked as the nation's 19th largest bank in terms of assets at end-September with 328 mln levs. The credit portfolio of the bank is worth 286 mln levs, including 190 mln levs loaned to commercial real estate and construction projects. The deposit base of the bank amounted to 71.5 mln levs or 22% of its balance sheet value. That figure is well below the sector average of 77%, indicating that the bank does not rely on deposits for its lending operations. The bank posted an end-September net profit of 14.7 mln levs and a sector-leading return on assets of 4.5%.
Source: Dnevnik (18.01.2006)

Since the start of Sofiyska Voda’s concession, the biggest problem for all company’s branches around the country remains the subsribers’ debts collecion, amounted to BGN 38 mln. only from households. As to motivate the clients, the company organized lottery for regular payers. Starting December 19, every day one of the clients, who paid its montly bill, shall receive BGN 25 as an award.
Source: Pari (28.01.2006)

Three Bulgarian air companies hold negotiations in between to form consortium, which will apply for the privatization of the state-owned Bulgaria Air SPJSC. These companies are Aviation Company Hemus Air SPJSC, Air Via LTD and BH Air LTD. The directors of the three companies gave non-committal answer to the question whether they will create consortium with the excuse that as long as the strategy for the privatization of Bulgaria Air is not approved by the Government, it could not be considered as an official document. At the approval of the strategy last week the Minister of Transport Mr. Petur Mutafchiev said that two types of investors will be admitted to the contest: strategic and financial. The total number of the passengers transported by the Bulgarian air companies in 2005 is 2 353 000, and Aviation Company Hemus Air, Air Via and BH Air are among the first four by market share. One of the Bulgarian banks that correspond to the requirement for financial investors is Central Cooperative Bank (CCB). CCB and Aviation Company Hemus Air have the same owner - the grouping TIM-Varna SPLTD.
Source: Sega (06.02.2006)

Bulgaria’s First Investment Bank (FIBank) has reached an agreement for the purchase of Serbian MB Banka of Nis, the Bulgarian bank said. FIBank will buy at least 75% plus 1% of the shareholders' capital of the private MB Banka, under the agreement. FIBank also has to increase the capital of MB Banka so that the net assets of the bank can amount to EUR 15 million at the minimum. The preliminary agreement, signed yesterday in Belgrade, is subject to approval by the financial authorities and the National Bank of Serbia. Should the deal be approved, FIB will set foot in yet another country in addition to Albania, Cyprus and Macedonia, where the bank has been operating for years. The acquisition of the Serbian bank is another step in the expansion of Bulgarian banks on the Balkans. Bulgaria's Central Cooperative Bank has branch offices in Cyprus and Zurich
Source: Pari (09.02.2006)

The shares issued as part of a capital raise operation by Central Cooperative Bank (CCB) will be put for trade on the Bulgarian Stock Exchange Tuesday, February 14. This will increase the total number of CCB shares traded on the bourse to 50,000. The capital of the bank was raised by BGN 16.169 million to BGN 48.507 million. The shareholders decided to offer 32.338 million rights, each of them allowing the subscription of two shares, in October 2005.
Source: Pari (13.02.2006)

A package of 143,000 shares in Central Cooperative Bank (CCB) will be auctioned on the Bulgarian Stock Exchange between February 24 and March 10. The guide price for the 1,000-share lots is BGN 6,500. CCB’s capital totals BGN 48,507,186 divided in as many shares. The bank raised its capital from BGN 32.338 mln in late 2005 through the issue of 16,169,058 new shares.
Source: Pari (21.02.2006)

Central Cooperative Bank (CCB) finished last year with net income of BGN 6.9 mln. Compared to the results of 2004 there is an increase by 13 per cent. Last year the bank reported income of BGN 6.1 mln. The increase of the financial result is almost three times less than the average growth of the same indicator for the bank system. While CCB reported 13 per cent growth, the sector as a whole has increased its profit by almost 35 per cent, according to the data of BNB. At the same time the other indicators of the institution, as growth of assets, deposits and credits, increase by temps, surpassing the average values of the system. At the end of 2005 CCB is the second biggest bank by asset amount in the second bank group.
Source: Dnevnik (28.02.2006)

Two companies owned by the Sofia municipality are trying to reverse in court the sale of their stakes in Municipal Bank which added up to 9.9%, Dnevnik learned from municipal councillors. The first hearing on the petitions filed by Roads and Facilities and Water Supply and Sewerage will be held today, said Municipal Bank. The aim of the lawsuits, prompted by the refusal of businessman Hristo Kovachki to buy the 67% held by the municipality at the price sought by the Sofia local government, is to restore to the Sofia municipality the control over Municipal Bank it lost in early 2005. Kovachki owns a blocking 26.37% stake in Municipal Bank which he acquired through second parties. According to banking experts, the value of the stake held by the municipality is around 25 mln euro if it represents a controlling interest. There are no takers for the Municipal Bank shares owned by the Sofia municipality because they would not allow the new owner to manage the bank. If the lawsuits are defeated, the municipality is expected to offer its stake to Kovachki at a price lower than its nominal value. No official information has been released regarding the sell-off talks, the valuation of the bank or the strategy of the mayoralty about the development of the bank. Municipal Bank is one of the nation's smallest in terms of assets. 2005 profit was reported at 3.9 mln levs. The deposit base of the bank stood at 358 mln levs with credits at 157 mln levs.
Source: Dnevnik (07.03.2006)

Bulgarian American Credit Bank (BACB), 99%-owned by the Bulgarian American Enterprise Fund (BAEF), moved a step closer to a listing on the Bulgarian stock exchange Wed when the financial regulator approved the prospectus for the secondary offering of 12,624,725 shares. The other banks traded on the local bourse are Economic and Investment Bank, Central Co-operative Bank and DZI Bank. The project will be advised by CA IBCorporate Finance and HVB Bank Biochim. The next regulatory hurdle is the approval of the Bulgarian stock exchange. BACB reported a net profit of BGN 24 mln for 2005, up from BGN 14 mln a year ago. Assets rose to BGN 381 mln by end-December versus BGN 299 mln in late 2004. The credit portfolio of the bank totalled BGN 308 mln with deposits at BGN 84.5 mln. The bank has so far issued 4 mortgage and 3 corporate bonds.
Source: Dnevnik (09.03.2006)

The market capitalization of the public companies, traded at the Bulgarian Stock Exchange, exceeded the limit of BGN 9 billion, and is now BGN 9.028 bln. The monthly data, released by BSE, headed by Ms. Bistra Ilkova, showed that the capitalization of the companies to the end of February was BGN 8.993 bln, and BGN 8.85 bln a month earlier. BTC is still having the highest market capitalization – BGN 2.963 bln, followed by Sopharma – BGN 580.8 mln, and Petrol JSC – BGN 378 mln. DZI JSC comes fourth with BGN 347.5 mln, and Kremikovtsi – fifth with BGN 333.13 mln.
Source: Monitor (13.03.2006)

Bulgarian private carrier Hemus Air will launch flights from Sofia to London and Berlin from April 9 and intends to operate a regular service to all European capitals within 2 years, said the company's executive director Dimitar Pavlov. Hemus Air will fly to London's Heathrow Airport on Sundays, Mondays, Wednesday, Fridays and Saturdays. Hemus Air will become the first Bulgaria carrier to resume flights to Heathrow after the landing and take-off slots of bankrupt national flag-carrier Balkan Airlines were sold for Gatwick slots. The flights to Berlin will be available on Fridays, Sundays and Tuesdays. The return fares to London and Berlin start at 199 euro without airport charges. Hemus Air said it is also in talks with potential partners to launch flights to Istanbul. Pavlov said the company will try to join one of the existing airline alliances. The company executive confirmed Hemus Air's interest in the upcoming privatisation of national flag-carrier Bulgaria Air. The flag-carrier is in bad shape and should be privatised as soon as possible, said Pavlov. The privatisation of the flag-carrier should be used by the Bulgaria air carriers as an opportunity to form an alliance, said Pavlov, adding that the native airlines will find life very difficult after Bulgaria joins the Open Skies agreement in the fall. The privatisation strategy requires eligible strategic investors to have sales of 150 mln euro for each of the past 2 years and 750,000 passengers, a requirement that none of the local carriers can meet. Hemus Air, owned by Balkan Hemus Group, intends to bid for Bulgaria Air in the capacity of financial investor via the Central Co-operative Bank (CCB). According to the DAXI legal information system, Balkan Hemus Group is wholly-owned by foreign trade company Chimimport. Chimimport owns CCB Asset Management which, in turn, controls CCB. Liechtenstein-registered Chiminvest Institute owns 98% of Chimimport.
Source: Dnevnik (17.03.2006)

Varna-based economic group TIM has created Bulgaria's fourth terrestrial television channel with national reach and is ready to start broadcasting by the end of 2006. The information was confirmed by Chimimport which also vouched that the company holding interim broadcasting licences for 27 of Bulgaria's biggest cities is part of its economic group. The arrival of a fourth terrestrial broadcaster is bound to reshape the TV advertising market and give its owners access to a nation-wide audience. At the moment, TIM is installing transmitters and hopes to upgrade its interim permits to permanent status by the end of the year. The new TV channel is called CTN and has blanketed Sofia since March 17 with a non-stop rotation of music videos. CTN is broadcast on the frequency vacated by Shumen-based terrestrial channel TOP TV. TOP TV founder Nikolai Yonkov lost ownership rights over the channel in late 2004 but is still trying to reverse that outcome in court. Chimimport bought from Bulgarian American Bank AD a debt it was owed by Yonkov as well as the debt collateral which included TOP TV. Chimimport then transfers TOP TV to its subsidiary Tehcnosteel which currently owns licences for all regional cities expect Yambol. Yonkov told Dnevnik he is trying to reach an out-of-court settlement with Chimimport. In January 2005, the Communications Regulation Commission (CRC) rejected the interim permit applications filed by TOP TV and Technosteel, saying the ownership of the Shumen-based broadcaster was not clear from a legal point of view. At the time, TOP TV did not have a licence because it was operating under the Telecommunications Act which was repealed and superseded by the Radio and Television Act. Under the latter, TOP TV was eligible for an interim permit because it was operating at the time the law took effect. Technosteel was eventually granted interim permits after successfully appealing the decision of the telecom regulator. Under the current legislation, even if CTN secures a nod from the CRC, it will still need to be issued a programming licence from the Electronic Media Council (EMC) to be able to broadcast identical content in all 27 cities. However, at the moment EMC is refraining from the award of programming licences in anticipation of the upcoming amendments to the Radio and Television Act. Technosteel can currently broadcast CTN via cable or satellite. Although Chimimport confirmed its ownership of Tehcnosteel, only an indirect connection cam be established between the 2 firms in the company registers. Technosteel is wholly-owned by Iliyan Blagoev who is member of the management of Kalin 2003 which, in turn, is owned by Finance Consulting 2002. Central Co-operative Bank, owned by companies form the TIP group, controls Finance Consulting 2002. Blagoev refused to make any comment on Thursday.
Source: Dnevnik (31.03.2006)

Bank Austria Creditanstalt (BA-CA) has acquired on behalf of its clients a stake in Bulgarian American Credit Bank (BACB) exceeding 19%, the Central Depository reports in its weekly bulletin. A package of 3.75 mln shares representing 30% of the bank's capital was floated on the local bourse last week, making BACB the 4th publicly traded bank in this country alongside Economic and Investment Bank, Central Cooperative Bank and DZI Bank. The exercise was advised by CA IBCorporate Finance, an investment unit of BA-CA, and HVB Bank Biochim. After the share sale, Bulgarian American Enterprise Fund lowered its stake in BACB to 69.4%. The bulk of the offering was scooped up by institutional investors from Austria, Sweden, the U.S., Finland, Switzerland, Germany, Ireland, the UK and Estonia. BACB's stock changed hands at BGN 32-33 per share on Monday. According to end-2005 central bank data, BACB ranked 21st among local banks in terms of assets (BGN 381 mln) and 12th in terms of capital (BGN 77.7 mln). The credit portfolio of the bank totalled BGN 307 mln with deposits at BGN 85.4 mln. In late 2005, Bank Austria acted on behalf of its clients in the purchase of stakes in insurer DZI and DZI Bank. After the transactions, Bank Austria issued warrants on the Viennese stock exchange with the DZI and DZI Bank shares as the underlying instrument.
Source: Dnevnik (11.04.2006)

The Bulgarian Telecommunications Company (BTC) has the largest market capitalisation of BGN 2.954 billion among listed companies, Bulgarian Stock Exchange (BSE) monthly bulletin data showed. Trailing by a huge margin, Sopharma ranks second with a market capitalisation of BGN 613.8 million. The Bulgarian American Credit Bank, one of the most recently listed companies on the bourse, occupies the number three spot with a market capitalisation of BGN 409 million. Three more banks make it to the top 20 enterprises on BSE in terms of market capitalisation. These are the Central Cooperative Bank (CCB), Economic and Investment Bank (EIBank) and DZI Bank with a market capitalisation of BGN 315.2 million, BGN 301.5 million and BGN 190 million, respectively. Tobacco blue-chips Blagoevgrad BT and Bulgartabac Holding, ranked 10th and 11th, respectively. Alcomet rounds out the top 20 with a market capitalisation of BGN 88.8 million.
Source: Pari (09.05.2006)

The Bulgarian Central Co-operative Bank (CCB) will ask its shareholders to approve a capital hike to 72.6 mln levs. A June 30 general meeting will vote on a proposal to issue 24,253,593 shares with nominal and issue price of 1 lev. The share sale will raise cash for consumer and mortgage lending operations. Up to 20% of the proceeds will be invested in the expansion of the CCB branch network. CCB hiked its capital from 32,338,128 to 48,507,192 levs in late 2005. In late 2004, the bank enlarged its capital from 16,169,564 to 32,338,128 levs. CCB Group Assets Management, wholly-owned by foreign trade company Chimimport, owns 67.38% of CCB. CCB posted a 13% year-on-year increase in profits to 6.9 mln levs in 2005. The end-2005 credit portfolio of the bank stood at 353.5 mln levs or 44% of its assets. The loans disbursed by the CCB rose 46% in 2005 versus 33% for the banking sector as a whole.
Source: Dnevnik (15.05.2006)

The apathy towards the Bulgarian shares again revived in the last session of BSE last week. A little more intense was the bidding for the securities of Central Cooperative Bank, Neochim and Sunny Beach. The shares of the bank turned round over BGN 32 000 and increased by almost 0,5 per cent to BGN 6,50. Neochim won 3,36 per cent and the average price of the shares was BGN 43,41, but there were deals for BGN 43,80. The securities of the south Black sea resort added 10,40 per cent to BGN 19,64.
Source: Monitor (12.06.2006)

The administrators of the bankrupt International Bank for Trade and Development (IBTD) have launched a procedure for the bulk sale of the enterprise. The information memorandum for the sale can be purchased until July 15. Ten days later, the administrators are expected to notify in writing the candidates that will advance to the next stage of the procedure. A company affiliated with local businessman Lyudmil Stoikov as well as foreign trade firm Chimimport are tipped as potential bidders for IBTD. Chimimport, which also owns Central Co-operative Bank, reportedly wants to use IBTD as an investment banking platform. IBTD is unofficially valued at BGN 6-7 mln. The cost of reviving the bank is seen at around 20 mln levs. The Bulgarian National Bank revoked IBTD's licence in June 2005 after a scrutiny of the bank's books revealed that its liabilities outweighed its assets by BGN 19.181 mln. The Deposit Insurance Fund reimbursed over BGN 26 mln to IBTD deposit holders.
Source: Dnevnik (26.06.2006)

Bulgaria's Central Co-operative Bank (CCB) said it will transfer its entire 2005 profit of BGN 6.38 mln to reserves. The CCB shareholders did not move against the year's dominant trend of banks opting to capitalise 2005's financial results to bolster their capital base. The CBB shareholders also decided to raise the bank's capital by BGN 24.2 mln to BGN 72.7 mln . The bulk of the proceeds will be used for consumer and mortgage lending; another 20% will be spend to enlarge the nation-wide office network In late 2005, CCB hiked its capital from BGN 32.34 mln to BGN 48.4 mln. The bank's assets totalled BGN 828.8 mln by end-March, according to data of the central bank, a figure the management has forecast will reach the 1 bln lev benchmark by the end of the year. CCB's credit portfolio was worth BGN 410 mln by end-March. The publicly trade CCB is majority owned by CCB Asset Management (67.38%). Insurance company Armeec is also among the bank's shareholders. Both companies are connected to foreign trade firm Chimimport.
Source: Dnevnik (03.07.2006)

Bulgaria's Central Cooperative Bank (CCB) will raise its capital from BGN 48,507,186 to BGN 72,760,779 by issuing 24,253,593 new shares, each with a BGN 1 par value. The decision was taken at the general shareholders' meeting of the bank. Rights purchased on the Bulgarian Stock Exchange (BSE) prior to July 12, 2005 will allow the subscription of shares at their issue value of BGN 1. No dividend will be distributed and CCB's entire 2005 profit of 6.387 million will be allocated to the reserves, it emerged after the meeting. The raised funding will be used for the expansion of the credit portfolio of the bank, the consumer and mortgage loans in particular. Up to 20-25% of the proceedings will be used for the expansion and the modernisation of the branch network of the bank. CCB is one of the 13 largest companies on BSE. The stock of the company has appreciated on BSE by 18% since the beginning of 2006 and by more than 53% over the last 12 months.
Source: Pari (04.07.2006)

Corporate Commercial Bank (CCBank) will pursue the acquisition of the bankrupt International Bank for Trade and Development (IBTD) on its own as well. CCBank will also compete for IBTD through Commercial and Investment Company wherein it controls 9.9%. If that stake was any higher, CCBank would have been obliged to seek the approval of the banking supervision authority. The remaining equity in Commercial and Investment Company is owned by companies affiliated with local businessman Lyudmil Stoikov. The IBTD administrators announced the sale of the bank in late June. The information memorandum for the sale can be purchased until July 15. Ten days later, the administrators are expected to notify in writing the candidates that will advance to the next stage of the procedure. Foreign trade company Chimimport, which also owns Central Co-operative Bank, is also tipped as a potential bidder. The company reportedly wants to use IBTD as an investment banking platform. Municipal Bank and Investbank are also believed to be interested in IBTD. IBTD is unofficially valued at BGN 6-7 mln . The cost of reviving the bank is seen at around BGN 20 mln. The Bulgarian National Bank revoked IBTD's licence in June 2005. The Deposit Insurance Fund reimbursed over BGN 26 mln to IBTD deposit holders.
Source: Dnevnik (07.07.2006)

Central Cooperative Bank (CCB) decreased its share participation in Oil and Gas Exploration and Production SPJSC – Pleven to 4,9912 per cent, as last week it transferred 0,1145 per cent. Chimimport owns 51 per cent of the capital and Inter Rubber Chemi LTD holds another 21,97 per cent.
Source: Monitor (19.07.2006)

BG40 ended the yesterday session at –0.75 per cent which is the biggest decrease of two months. For the mentioned period the index has reported negative result only 10 times, and the yesterday drop was the first in 12 sessions. SOFIX however reported fourth serial hike – by 0.07 percent. The price increase in the shares of Orgachim – by 2.8 percent, and Neochim – by 1.29 per cent, was most useful for both indexes. Petrol (+0.3 per cent) was the third company with increased shares price within the SOFIC frameworks, as only 8 of the blue chips were traded. The decreases were three as well - Central Cooperative Bank lost 0.41 per cent of its capitalization, DZI Insurance and Re-insurance JSC dropped by 0.28 per cent, and Albena – by 0.05 per cent. Biovet and Sopharma were traded without change, and the total turnover in the index shrank to 9498 lots. The session’s most traded company reported the highest increase among the 40 positions in BG40 – after 27,846 traded shares of Alcomet their price upped by 5.89 per cent up to the record of BGN 6.11 per share. Right after it came Chimko (+4.55 per cent), Industrial Capital Holding (+4.23 per cent) and Favorit Holding (+4.17 per cent). The drop of Odessos Shiprepair Yard S.A. (by 6.31 per cent) however did not allow the index reach a new record.
Source: Pari (27.07.2006)

Moody's Investors Service announced July 27 it has assigned B3/not-prime long- and short-term foreign currency deposit ratings to Bulgaria's Commercial Bank Investbank AD (iBank). An E+ financial strength rating has also been assigned to the bank. All ratings carry stable outlooks. Moody's said that the E+ financial strength rating reflects the bank's small business franchise in Bulgaria's competitive banking market, its high credit concentration levels as well as its vulnerability to development risks in the evolving Bulgarian banking market. The rating also captures the bank's good credit quality and good liquidity levels. At the same time the rating is constrained by iBank's weak earning power reflecting its low interest rate margins in the Bulgarian context and the relatively expensive operating structure. Starting from a low base, the bank has been experiencing strong business and balance sheet growth, says Moody's. Going forward iBank is looking to change its strategic focus away form corporate banking and into retail. Aggressive expansion plans and fierce competition in the Bulgarian retail banking sector give rise to challenges with regards to managing growth which may become a concern, says Moody's. In Moody's view, one of the challenges facing management will be the need to expand the funding base and grow the stable deposit base in order to support the bank's growth. The rating agency also cites possible challenges in ensuring that the bank's internal systems, procedures and controls are adequate and are commensurate with every stage in its development. In this regard, iBank does not have the benefit of access to the support of a foreign shareholder bank, as do some of its competitors, and will therefore need to develop its internal systems based on its own resources. The B3/NP deposit ratings reflect the bank's stand-alone creditworthiness based on its intrinsic franchise strength. Although the strategic shareholder has so far displayed willingness to provide capital support for the bank's growth, Moody's has not imputed external support in the deposit ratings. The planned BGN 10 mln capital increase will support the bank's ratings while failure to successfully increase capital levels promptly will limit the bank's capacity to grow. Any further deterioration of regulatory capitalization will be viewed as a negative rating driver, says Moody's. Moody's notes that the bank's ratings could move up with a material strengthening of its franchise and improvement in the bank's earning capacity and credit risk profile through the expansion and diversification of the loan portfolio. iBank is headquartered in Sofia, Bulgaria, and had total assets of USD 179.28 million as at end-March 2006.
Source: Dnevnik (31.07.2006)

Bulgaria's Postbank now offers online applications for Visa credit cards. The bank waives the first annual fee for clients approved to receive a Visa credit card before Sept 30. Postbank's ongoing promotional credit card interest rate of 9.9% for the first 3 repayment months also expires on Sept 30. Several local banks, including First Investment Banks and Central Co-operative Bank, already offer online applications but only for debit cards.
Source: Dnevnik (04.08.2006)

Holding company Chimimport plans to make an initial public offering in early September, said Alexander Kerezov, member of the company's managing board. The bourse debut moved closer Wednesday when the financial regulator entered the holding in the register of public companies and okayed the IPO prospectus. Chimimport will IPO 11,083,914 new shares with a nominal value of 1 lev each as part of a capital raise from 118,916,086 levs to 130,000,000 levs. The issue price of the shares will be 4 levs per unit, said the Central Co-operative Bank (CCB) which will act as intermediary. The company will not offer the new shares on the local bourse but through 31 CCB branches. Chimimport, the nation's biggest holding structure, posted a consolidated profit of BGN 30 mln for 2005 and asset holdings of BGN 1.118 bln. The company owns stakes in 44 companies active in finance, banking, transport, legal aid, advertising, manufacturing, retail, accounting, and oil and gas prospecting. Chimimport is 98.095%-owned by Chimimport Invest, a structure affiliated with Varna-based economic conglomerate TIM.
Source: Dnevnik (10.08.2006)

Holding company Chimimport will make an initial public offering on September 7, said Alexander Kerezov, member of the company's managing board. Chimimport will IPO 11,083,914 new shares with a nominal value of BGN 1 each as part of a capital raise from BGN 118,916,086 to BGN 130,000,000. The issue price of the shares will be 4 levs per unit, said the Central Co-operative Bank (CCB) which will act as intermediary. The company will not offer the new shares on the local bourse but through 31 CCB branches. The minimum subscription target is 5.5 mln shares. In case the issuance is oversubscribed, principal shareholder Chimimport Invest could distribute an additional 1.95 mln shares or 1.5 per cent of the capital. Chimimport, the nation's biggest holding structure, posted a consolidated profit of BGN 30 mln for 2005 and asset holdings of BGN 1.118 bln. The company owns stakes in 44 companies active in finance, banking, transport, legal aid, advertising, manufacturing, retail, accounting, and oil and gas prospecting. Chimimport is 98.095 per cent-owned by Chimimport Invest, a structure affiliated with Varna-based economic conglomerate TIM.
Source: Dnevnik (30.08.2006)

Bulgaria's pension insurance companies have sheltered a fourth of their collective assets or BGN 332 mln in the local capital market, shows data of the Financial Supervision Commission for the first half of 2006. The funds have invested BGN 157 mln in equities and BGN 175 mln in corporate bonds. The capital market is most popular as an investment option among the universal pension insurance companies which also manage the biggest chunk of the industry's assets. These company have invested 26 per cent of their BGN 500 mln in assets in 'securities traded on the regulated market', as the financial regulator put it, splitting them equally between equities and bonds. The Saglasie universal is the fund that has invested most heavily in equities and bonds, tying up 35 per cent of its assets in such securities. CCB Sila is a close second with 31 per cent. Both funds belong to the Central Co-operative Bank financial group. In terms of the size of investment, the leader is Doverie with BGN 53.5 mln parked in stocks and bonds. The opposite case is ING which has invested only 15.69 per cent of its assets on the bourse. The voluntary pension insurance companies, which manage BGN 415 mln in assets, have collectively invested BGN 109.2 mln on the local bourse. The Doverie voluntary pension insurance fund leads the segment with 41 per cent of assets invested on the bourse. The voluntary pension units of ING and DZI Pension Insurance have been least active in that respect. The occupational funds have invested BGN 94.2 mln on the bourse. The domestic pension insurance funds managed BGN 1.262 bln in net assets in the first half of 2006, up 34.4 per cent year-on-year. The number of Bulgarians with a supplementary voluntary pension plan rose 8.5 per cent year-on-year to 3 mln at end-June.
Source: Dnevnik (05.09.2006)

The biggest initial public offering (IPO) in Bulgaria will have a serious effect on the stock market, brokers predict. Between September 7 and 21 Chimimport will be offering shares for subscription. Investors have to subscribe at least 5.5 million shares for the capital raise to be considered successful. Most financial analysts are of the opinion that interest will well exceed the 11,083,914 new shares offered with which Chimimport's management plans to increase the capital to BGN 130 million. Unlike the IPOs of other companies, Chimimport will not place the shares on the Bulgarian Stock Exchange but will sell them at 31 of Central Cooperative Bank's branches. According to the prospectus, if the issue is oversubscribed the main shareholder, Chimimport Invest, can sell up to 1.950 million of its own shares.
Source: Pari (05.09.2006)

Chimimport, one of Bulgaria's biggest holding companies, moved closer to its bourse listing Thursday when investor got the go-ahead to place their bids for the upcoming share sale. Market watchers said the company has the potential to become the nation's third biggest public corporation in terms of market capitalisation. The Chimimport capital raise, most likely 2006's barn-burner as far as the local capital market is concerned, will continue through September 20. The company said it expected its shares to start trading on the local stock exchange in late October. Chimimport will IPO 11,083,914 new shares with a nominal value of BGN 1 and issue price of BGN 4. The exercise could fetch the company as much as BGN 44 mln in fresh cash for the development of its financial business operations. According to the IPO prospectus, BGN 22 mln of the raised amount will be used to increase the capital of Central Co-operative Bank (CCB). The bank plans to increase SME and retail lending and services and to expand its branch network. CCB also intends to set up a couple of mutual funds and debut co-branded products with other companies from the Chimimport group like air carrier Hemus Air. For its part, Chimimport plans to launch one more insurance and one health insurance companies. The holding owns the Armeec insurance company and the CCB Sila and Saglasie pension insurance companies. Further investment is also planned for vegetable oil producer Sunny Rays Bulgaria and the Pleven-based Oil and Gas Exploration and Extraction Co. Sunny Rays, which Chimimport plans to list by the end of 2006, intends to build a biodiesel installation In Provadia and a bio ethanol refinery in Varna. Some EUR 25 mln have been slated for investment in another Chimimport-controlled company, the Bulgarian River Shipping Corporation (BRSC). BRSC will have a new port facility at Ruse, on the Danube, by the end of 2006 as well as two renovated bio ethanol tankers. The capital of the company will be increased by 10 per cent in 2007. Chimimport, 98.095 per cent-owned by Chimimport Invest, controls stakes in 44 companies. The company's total assets topped BGN 1.5 bln at mid-year, up from BGN 1.18 bln a year ago.
Source: Dnevnik (08.09.2006)

The Bulgarian Central Co-operative Bank (CCB) will hike its capital to BGN 72.6 mln, says a notice posted in the Official Gazette. The share sale, which got the nod from the shareholders in late June, will raise cash for consumer and mortgage lending operations. Up to 20 per cent of the proceeds will be invested in the expansion of the CCB branch network. The minimum subscription target is set at half the 48.5 mln rights the will be issued. CCB hiked its capital from BGN 32,338,128 to BGN 48,507,192 in late 2005. In late 2004, the bank enlarged its capital from BGN 16,169,564 to BGN 32,338,128. CCB Group Assets Management, wholly-owned by foreign trade company Chimimport, owns 67.38 per cent of CCB. The CCB free float on the Bulgarian stock exchange is 19.97 per cent.
Source: Dnevnik (13.09.2006)

Chimimport, the foreign trade company, has increased the number of additional shares it may opt to distribute among certain investors in case the company's IPO which ended Wednesday is oversubscribed. The decision was taken by Chimimport's main shareholder - Chimimport Invest, said Alexander Kerezov, deputy chairman of the Chimimport managing board. No one from Chimimport Invest could be reached for comment before Dnevnik went to print. Instead of 1.95 mln old shares, the owner could distribute up to 3.25 mln or an additional 1.3 mln old shares on top of the figure stated in the original IPO prospectus, shows a Chimimport announcement published in Wednesday's edition of local newspaper Pari. According to the original version of the IPO prospectus approved by the financial regulator, Chimimport Invest has the right to distribute among hand-picked buyers additional shares at a price of BGN 4 per unit during a 10-day period after the Chimimport capital raise is recorded in the commercial register. The majority owner also plans to distribute free of charge up to 0.3 mln shares to members of the managing and controlling bodies of Chimimport and other group companies as performances bonuses and incentives, said the announcement. The deadline for the submission of bids for the 11,083,914 new Chimimport shares with a nominal value of BGN 1 and issue price of BGN 4 expired on Wednesday. The market expects the issue to be 2 to 3 times oversubscribed. The shares should begin trading on the bourse on October 31. Chimimport controls stakes in 44 companies. The company's total assets topped BGN 1.5 bln at mid-year, up from BGN 1.18 bln a year ago.
Source: Dnevnik (21.09.2006)

The build-up to the IPO of Chimimport, Bulgaria's biggest holding company, did not disappoint with investors oversubscribing more than twice the offering of 11.083 mln new shares. Shares were picked up by leading financial institutions and investment funds from Central and Eastern Europe and Scandinavia, Bulgarian banks and investment brokerages and a large number of retail investors, said the Central Co-operative Bank which handled the IPO. The investors that have filed bids will receive a confirmation about the exact number of shares they will acquire by September 26. Chimimport Invest, the Chimimport majority owner, offered 11,083,914 new shares with a nominal value of 1 lev and issue price of 4 levs. The exercise should generate 44.335 mln levs in fresh cash while raising the capital of the holding from 118 mln to 130 mln levs. On the last day of the subscription process, Chimimport announced it will increase by 66% - to 3.25 mln, the additional shares that could be distributed among designated investors in case the IPO is oversubscribed. The Chimimport shares are expected to be registered for secondary trading on the local bourse around October 31. Chimimport controls stakes in 44 companies active in finance, transportation and industrial manufacture.
Source: Dnevnik (25.09.2006)

The Sofix blue-chip index on the Bulgarian Stock Exchange (BSE) rose by 29.39 points on Wednesday to hit an all-time high of 1002.88 points. The strong performance can be put down to the trade in shares of DZI Insurance and Reinsurance company and DZI bank, which resumed on the day. The stock of the insurer appreciated by 20.6% to an all-time high of BGN 120. DZI Bank gained 26.8% also to hit a record high BGN 7.5 per share. Trade in shares of both insurer DZI and DZI Bank was suspended for nine sessions, until the new owner of the majority stake in the bank would become clear. Greece's Eurobank EFG will pay EUR 157.76 million for 74.26% of the capital of DZI Bank, it emerged at the end of last week. Trade in DZI Bank's shares also influenced the performance of the broader BG40 index, which advanced to an all-time high 181.84 points.
Source: Monitor (05.10.2006)

The Top 20 Listed Companies on the Bulgarian Stock Exchange Evaluated at BGN 8.2 bln The market value of the 20 biggest companies in Bulgaria already totals almost BGN 8.2 bln while the whole capitalization of all Bulgarian Stock Exchange traded companies totals BGN 11.17 bln. The leading spot take BTC and Sopharma JSC. Their market capitalization are valued BGN 2.85 bln and BGN 724 mln respectively. Sopharma’s second spot can be competed not sooner than next month when Chimimport JSC’s shares will be traded on the Stock Exchange. Economic and Investment Bank JSC’s shares hold their record high levels as of last months trade and this is enough for the third place in the standings with a market value of BGN 557.3 mln. DZI took over the fourth place out of the Bulgarian-American Credit Bank as yesterday a pretty “strange” trade of its shares at BGN 120 per share took place. The market value of the two copanies are BGN 463 mln and BGN 423 mln respectively. Petrol JSC takes the sixth spot with a market capitalization of BGN 382 mln while DZI Bank takes the seventh with BGN 343 mln. The other companies that managed to reach a top 10 ranking are Albena JSC, Kremikovtzi JSC and Central Cooperative Bank JSC with market values of BGN 329.8 mln, BGN 296.7 mln and BGN 262.4 mln respectively. Riviera JSC is the latest company that took advantage of the DZI Bank’s sale as it took the 19-th spot with a market capitalization of BGN 100 mln. Riviera JSC took place in the DZI Bank deal as it sold its 7.45% share. The market capitalization of the top 20 ranked companies totals 73.2% of the market value of all listed companies on the Bulgarian Stock Exchange.
Source: Monitor (06.10.2006)

The return generated by Bulgaria's pension insurance companies continues to fall and was reported at an average of 9.21 per cent by the nation's insurance supervisor. The CCB Sila and Saglasie pension funds, part of the Central Co-operative Bank group, were the only standouts, posting a sharp increase in return rates. The insurance supervisor has determined a minimum annualised return on universal fund assets of 5.16 per cent for the past 24 months and a minimum annualised return on occupational fund assets of 5.40 per cent over the review period. According to Saglasie chief executive director Milen Markov, the fund managed to latch onto the local stock rally which had a positive impact on return rates. Universal funds Doverie, another holder of a solid stock portfolio, and DZI have also recorded a slight gain in returns but yield levels at all other universal funds have gone south. In addition to the CCB group, the DZI and DSK-Rodina occupational funds also notched up modest yield gains. The average return on this segment is 8.81 per cent. The average return among the voluntary supplementary funds was reported at 9.39 per cent. The downward trend is attributed to the devaluation of government securities which make up more than half of the funds' investment holdings. Deposits are also yielding less with interest falling from around 8 per cent in 2005 to 5 per cent at the moment. The regulator said CCB Sila exceeded the return cap set for the review period and will have to allot funds to reserves.
Source: Dnevnik (11.10.2006)

The financial regulator Wed entered Chimimport, Bulgaria's biggest holding company, into the register of public corporations. The capital of the company is divided into 130 mln shares with a nominal value of 1 lev each. The shares will be registered for secondary trading on the Bulgarian stock exchange by Oct 31, according to a target deadline posted on the website of the Chimimport-owned Central Co-operative Bank.
Source: Dnevnik (12.10.2006)

The local Central Co-operative Bank (CCBank) said it will start issuing chip-enabled Visa credit cards at the end of Oct. A magnetic stripe on the CCBank chip cards will make sure they are processed by POS terminals and ATMs that are not yet compatible with the chip technology. Commercial Bank Allianz Bulgaria and credit card company Transcard were the first in Bulgaria to migrated to the safer credit card standard. First Investment Bank is also preparing to convert to the chip technology.
Source: Dnevnik (25.10.2006)

Central Cooperative Bank (CCB) will start issuing credit cards with an embedded chip as of the end of October 2006. CCB is the second Bulgarian bank to offer the so called smart credit cards. Allianz Bulgaria commercial bank launched credit cards with an embedded microchip in the middle of 2006. Holders of the Visa Favourite card to be issued by CCB, will receive a 60-day interest-free period for purchases made both in Bulgaria and abroad. Another advantage is that customers will not be charged fees for purchases made online with the card. ProCredit Bank is the next Bulgarian bank after CCB expected to launch a credit card with a chip technology.
Source: Monitor (25.10.2006)

The capital of Central Co-operative Bank will jump from BGN 48.5 mln to BGN 72.76 mln after all new shares issued by the company were subscribed and paid in, said the Bulgarian stock exchange. The new shares will start trading after the capital raise is registered in court. The bank will use 80 per cent of the fresh cash for consumer and mortgage lending while the remainder will be spent on the modernisation and expansion of its branch network.
Source: Dnevnik (01.11.2006)

Armeets Insurance company posted BGN 7.1 million profit after tax for the first nine months of 2006. The gross premium income of the company amounted to BGN 37.375 million. Armeets' assets totalled BGN 62.728 million for the period, up 146% year on year. The equity capital of the insurer increased by 290% to BGN 23.082 million. The good financial result makes us optimistic that the company is developing in the right direction and will be competitive after January 1, 2007, Rumen Georgiev, chairman of the management board and CEO of the company said. Armeets paid insurance claims for BGN 10.560 million for the first nine months of 2006. The company holds a 6-percent share of the domestic market and made investments for BGN 39.772 million in the period.
Source: Monitor (07.11.2006)

Bulgaria's First Investment Bank (FIBank) has successfully undergone the necessary certification and will start issuing chip-embedded Visa and MasterCard credit cards from '07. The bank said it will replace all of its branded cards in circulation with EMV smart cards. The migration to the safer standard is part of FIBank's project for the creation of a stand-alone authorisation center, a new card system and the aligning of the bank's terminals to the new standards of the card issuers.
Source: Dnevnik (09.11.2006)

Assenova Krepost, the Asenovgrad-based producer of consumer and transportation packaging materials, will mortgage properties and assets and register a special pledge to secure the rescheduling of a BGN 2 mln loan extended by Central Co-operative Bank to Inplastrade. The latter company owns 56.13 per cent of Assenova Krepost. Assenova Krepost posted a loss of BGN 0.879 mln by the end of the third quarter, up 0.2 mln y/y.
Source: Dnevnik (10.11.2006)

Elektrometal sold for six times market price Bulgaria's AKS-77 has become majority owner of Elektrometal for BGN 230,000. The buyer company is wholly-owned by Mihail Mihaylov, 29, who is executive director of Holding Nov Vek. Mihaylov also holds 19.24% in the holding through AKS-77. A total of 15,830 shares, or 49% of the capital, were transferred from Kauchuk 97 to Elektrometal in a block deal at a price of BGN 14.53 per share. The price of the deal exceeded Elektrometal's last trading price six-fold. Investment intermediary of the transaction was Central Cooperative Bank. Elektrometal's equity capital amounts to BGN 360,000, the company's nine-month report shows. The total assets stand at BGN 429,000 and the profit for the period amounts to BGN 31,000.
Source: Pari (13.11.2006)

Velingrad-based hotel and restaurant operator Velina will triple its capital from BGN 0.51 mln to BGN 1.53 mln, the company said in a filing with the local stock exchange. Velina will float 1.02 mln new shares with a nominal value of BGN 1 and issue price of BGN 1.15. The minimum subscription target is set at 0.918 mln shares.
Source: Dnevnik (27.11.2006)

The January-September net profit of Chimimport, Bulgaria's biggest holding company, doubled to BGN 23.5 mln versus BGN 12 mln a year ago, shows the company's consolidated interim financial report submitted to the local stock exchange. Full 2006 consolidated net profit is seen at BGN 41.39 mln, up from BGN 30 mln a year ago. Operating income increased to BGN 1.18 bln during the review period from BGN 828 mln a year earlier. Sales generated only a fifth of overall earnings with forex gains contributing making the most substantial contribution. Operating costs were reported at BGN 1.14 bln versus BGN 808 mln a year ago. The financial statement of the company consolidates the nine-month figures reported by its transportation, manufacture, insurance and commercial divisions. The biggest contribution to the earnings total was made by the transportation companies Bulgarian River Shipping Corporation and Balkan Hemus Group, the owner of air carrier Hemus Air. The assets of the holding stood at BGN 1.54 bln at end-September, up from BGN 1.12 bln a year ago. Long-term liabilities went from BGN 81 mln to BGN 507 mln, a jump attributed to the deposit and settlement account operations of Chimimport-controlled Central Co-operative Bank.
Source: Dnevnik (29.11.2006)

Belsuin, a Bulgarian-Portuguese joint venture, said it has picked Romanian city Mangalia for the construction of a EUR 0.9 mln slaughterhouse. Initially, the company planned to implement the project in the Bulgarian village of Septemvriitsi, in the Kavarna area, but backtracked in the face of administrative glitches. Belsuin said the design stage of the project has been completed and construction should be gin in late '06. The company will launch a EUR 0.22 mln animal feed factory in Septemvriitsi by Feb '07. The facility will have an hourly capacity of 8 tons.
Source: Dnevnik (13.12.2006)

Local holding company Chimimport has transferred equity in vegetable oil producer Sunny Rays Bulgaria to pension insurance company CCB Sila and Prima Chim. CCB Sila, a Chimimport company, acquired a 6.63% stake while Prima Chim took control of at least 10% of the publicly traded company. Prior to the transaction Sunny Rays Bulgaria, wholly-owned by Chimimport, registered its capital of 10 mln levs for secondary trading on the local bourse.
Source: Dnevnik (29.12.2006)