Artio sells part of its investment in Bulgaria U.S. fund Artio International Equity Fund, which is known as an investor in several Bulgarian companies, sold part of its shares in the manufacturer of electrical equipment Sparky – Eltos, according to the bulletin of the Central Depository, which reveals additional information on the major stock exchange transactions. Since becoming a shareholder in the Lovech-based plant in 2007, the foreign investor repeatedly reduced its exposure to it. The latest sale occurs shortly before the release of the company's report for the fourth quarter, from which, judging by the previous ones, we can hardly expect positive surprises. Trends of recent quarters show difficulties, with which Sparky - Eltos fights. The reason for the withdrawal of Artio, however, can be quite different and could be related to its overall strategy related to its presence in Bulgaria. In recent months, Artio’s portfolio remained without the shares in Chimimport and Central Cooperative Bank, shows a reference on its site at the end of November.
Source: Capital (14.01.2014)

Bulgarian Development Bank Appoints Third CEO The Bulgarian Development Bank announced it has appointed Ivan Hristov as executive director, its third. Prior to this appointment Hristov has been serving as member of the Board of Directors. The bank has two more executive directors – Dimo Spasov and Bilyan Balev, who is also chairman of the Board of Directors. The Bulgarian Development Bank AD is the successor of Encouragement Bank set up in 1999. The latter was transformed into a development bank after the adoption of a special law by the Parliament of Bulgaria in April 2008. BDB's mandate is to provide loan financing to domestic SMEs, either directly, or through the provision of wholesale earmarked funding for SMEs through local commercial banks. The bank also acts as the preferred agent for various government lending programs, including the assimilation of EU funds. The bank has two wholly-owned subsidiaries, the National Guarantee Fund and the JOBS Microfinance Institution.
Source: money.bg (14.01.2014)

Corporate Commercial Bank will develop Credit Agricole as a separate bank Corporate Commercial Bank and newly acquired Credit Agricole Bulgaria will continue to exist as two separate institutions on the Bulgarian market. At this point the price of deal was not disclosed. The deal for acquisition was signed Wednesday and was concluded for 100% of the French subsidiary’s capital. Approvals from BNB and Commission for Protection of Competition are imminent. French bank Credit Agricole commented that it sold its Bulgarian subsidiary as an attempt to decrease the scale of its business. Two years ago the credit institution made significant restructuring on global level in nearly half of the countries where it operates. Sale in Bulgaria is believed to reduce risk-weighted assets of the mother company by EUR 160 million. On the other hand CCB made is clear that the new bank will also focus on a new profile - small and medium business and retail banking.
Source: Capital (23.01.2014)

Banks operating in Bulgaria with Bulgarian capital have become larger in 2013, according to a report of Profit.bg. Data of BNB for 2013 show that First Investment Bank (FIB) and Corporate Commercial Bank (CCB) are the third and fourth largest bank in the country. However, if you add the assets of MKB Unionbank and Credit Agricole, FIB will become the second largest institution in the country, while the CCB will retain its fourth position. Adding other Bulgarian banks, their share of total assets in the bank system of the country increased to 30.61% compared to 27.68% at the end of 2012. Among the top 10, however, there is only one Bulgarian bank and it's Central Cooperative Bank, which is part of the structure of the Chimimport. Factsheet shows that Bulgarian banks ended 2013 with positive financial result of BGN 96.6 million compared to a profit of BGN 68.1 million in 2012 (results for 2013 included data for Credit Agricole and Unionbank). Best results were reported by KTB – profit of BGN 71.2 million, from BGN 37.7 million in 2012.
Source: profit.bg (10.02.2014)

The state got BGN 1, 9 million for its share in Kempinski The state sold its share of 7, 58% in hotel Kempinski Hotel Zografski at a centralized public tender at the end of last year. Buyer is Business center Izgrev SPLTD, which paid BGN 1,935 million for state shares of Zografski PJSC. This is slightly over the initial price of the tender, which was set at BGN 1,933 million. Since 2011 the state has been trying to trade its shares in the company. Business center Izgrev is close to owners of Chimimport. Till last year Business center Izgrev was owner of Sofia’s hotel Pliska, but last year it transferred the property to Central cooperative bank for BGN 27 million. Via the transaction owners of Chimimport officially stated their interest for acquisition of full property over Kempinski hotel. The so called Japanese hotel has been put for sale since 2007.
Source: Presa (23.02.2014)

Petrol AD feels the squeeze from falling business volumes The consolidated financial report of fuel distributor Petrol AD for 2013 shows a decline in sales revenues (down 15%), increased costs for external services, salaries and financial management. The bad news comes after the age-long battle between shareholders Mitko Sabev and Denis Ershov ended up with Alfa Capital (company close to Corporate Commercial Bank) getting on board. The good news is that Petrol AD managed to narrow its loss to BGN 28 million from nearly BGN 44 million in late 2012, but that, however, was due to squeezed business volumes rather than efficient management. In the past couple of years, Corporate Commercial Bank replaced Central Cooperative Bank as Petrol AD’s main creditor.
Source: Capital (06.03.2014)

Petrol will raise record capital through the stock exchange Fuel distributor Petrol intends to make the largest capital raising in the history of the Bulgarian Stock Exchange (BSE) - the company will look for over BGN 270 million from its shareholders and potential investors, says a notice for an extraordinary general meeting of its shareholders. The company plans to raise money by playing a new issue of shares with which to increase and its share capital. Upon successful registration, the capital will grow between BGN 109.25 million and BGN 163.87 million. In order to consider the issue successful, at least 40 million shares (BGN 200 million) must be enrolled and according to portfolio managers it is a sign that management of the company has already made arrangements with one or more investors to purchase such amount of securities. If all the new shares are sold successfully, it will be the largest single amount collected by an increase in capital on the Bulgarian market, according to report from BSE. It is still not clear exactly what the money will be used for.
Source: Capital (07.03.2014)

Market assessment of Velgraf Asset Management PLC on the Bulgarian Stock Exchange is BGN 196 million. Galata Investment Company JSC is assessed to nearly BGN 103 million, while recently separated from it Regal Invest- BGN 32 million, while Chimsnab Bulgaria’s assessment is BGN 81 million. Other BGN 61.5 million assets have to be added that are in a process of merger in Rodna Zemya-Holding. Thus the overall market capitalization of the group will reach 5% of all market capitalization of Bulgarian public companies. All of these companies were controlled by Chimimport. Sole institutional investors in these companies are Central Cooperative Bank and Texim bank, as well as pension funds CCB - Sila Pension Insurance JSC and Saglasie - Pension Insurance Company. Rodna Zemya-Holding was acquired by Chimimport in 2011. According to the plan ten companies have to merge in Rodna Zemya-Holding part of whose are owned by the holding. An approval has already been granted by the Financial Supervision Commission, as the holding is a public company and after the merger the new company will continue to be so.
Source: Capital (10.03.2014)

Contactless Payments On The Rise in Europe The European consumers made more than 340 million contacltess payments in 2013, shows the data of Visa Europe. The sum spent via contactless payments increased threefold and reached EUR 453 M. The growth is explained with the increasing popularity of such type of payments. The service is gaining popularity in Bulgaria as well. By January this year the banks have issued more than 50 000 contactless cards, which can be used at more than 5200 POS terminals. The total number of such cards in Europe is 80 million and the terminals are more than 1.3 million
Source: Capital (21.03.2014)

Energy holding keeps its interest for Chimko Bulgarian energy holding wasn’t present on the auction for assets of the fertilizers’ plant Chimko based in Vratsa that took place on the 19th of March. The reason is that the announced price of BGN 28.5 million didn’t correspond to their expectations. Yet the state holding plans acquiring assets of the ex-plant. The idea for Chimko is a synergy between production of urea and the fundamental need for electricity and gas, which make 80% of the value of this product. The company’s economic and technical analyses have not been yet prepared, as well as the prospects for sale of these products. BEH intends to acquire assets or at least shares of Remotex, which is a strategic company for the East Maritsa power pool. Via the newly-founded company under the name of Energy Investment Company BEH is to complete its investment purposes. The aim is BEH to turn into a regional leader in the energy field.
Source: Dnevnik (25.03.2014)

Six banks provide services to the judiciary in Bulgaria Two-thirds of the judiciary in Bulgaria has picked six banks to run their financial affairs, Sega daily reads, quoting data provided by the Supreme Judicial Council. UniCredit Bulbank leads the chart with 83 courts and prosecutor’s offices, followed by UBB with 58, DSK Bank, Central Cooperative Bank, SG Expressbank and Cibank, servicing between 37 and 20 judicial bodies each. All in all, the judiciary in Bulgaria uses the services of 15 banks, including BNB. The topic was brought to the public attention in early 2014, after some revelations about the newly appointed chair of the Varna Court of Appeal Vanuhi Arakelyan. According to reports, while she was on her previous job as head of the Regional Court, Arakelyan picked Corporate Commercial Bank for service provider, had her mortgage refunded by the same bank. She also took a EUR50,000 consumer loan from it with a preferential interest.
Source: Sega (28.04.2014)

Only a handful of state companies have not met the rules for deposits Eight companies from the energy, industry and transport fields violate the rules for the concentration of deposits, a government report by end-March shows. A few companies exceed the 25% limitation for the concentration of their funds in a single bank and in some cases the reasons are justifiable. Energy companies, the ones which hold the greatest financial resource, have kept their commitment to distribute their deposits in more than one bank. Thus the Bulgarian Energy Holding (BEH) has distributed its funds among five banks, while in March 2013 it kept 88.2% of its money at Central Cooperative Bank (CCB). Bulgartransgaz also abides by the rules. In end-December its net exposure to CCB was over 31%. The companies that still maintain a higher share of deposits at a single bank by end-March are State Consolidation Company, National Company Industrial Zones, Industrial Logistics Park – Burgas and LB Bulgaricum. LB Bulgaricum explained that the reason is a payment from a foreign contractor transferred in the last days of March, Capital daily reports.
Source: Capital (15.05.2014)

Four companies to merge into Nov Vek Holding Nov Vek Holding announced it would acquire four food and drink companies. The decision was taken on 8 April 2014 during a session of the supervisory and the management boards of the holding. Currently, the holding owns 12 companies in the field of light industry and its capital is BGN 1.5 million. Its market capitalisation before the merger is BGN 14.7 million. Financial results of Nov Vek Holding for Q1 amounted to BGN 102,000. Holding’s stocks have one of the lowest liquidity on the market. Major shareholders of Nov Vek Holding in end-March are CCB Leader (13.57%), CCB Active Fund (11.33%), Central Cooperative Bank (11.18%), MF Real Finance High Yield Fund (6.62%) and Real Finance Balanced Fund (7.12%).
Source: Capital (19.05.2014)

Fifteen financial institutions expressed interest towards Bulgaria's Victoria Bank credits Fifteen banks have expressed interest in buying packages of credits from Victoria Bank – a subsidiary of Corporate Commercial Bank. Three banks – DSK Bank, Central Cooperative Bank and Investbank – have expressed interest towards the entire loan portfolio of the bank, including non-performing credits. Bulgarian Development Bank (BDB) is interested in unserviced corporate loans as well as the credits of small, medium-sized and large companies. The most attractive packages from the bank’s crediting portfolio are small business loans, mortgage credits and consumer loans with a mortgage – 12 banks expressed interest towards these segments. Now candidate-buyers will make a detailed analysis of the credits they expressed interest towards and if they remain interested – present an offer by October 15.
Source: Standart (06.10.2014)

Grisha Ganchev to refinance Petrol debts to Corporate Commercial Bank After straightening his control over public company Petrol by replacing its Supervisory Board and moving its head office to Lovech, Grisha Ganchev is on his way of straightening his financial influence upon the company as well. Elitå Petrol, a subsidiary of Petrol owning its most valuable gas stations, has signed a contract with Crystal Asset Management to cover debts to the closed Corporate Commercial Bank and Central Cooperative Bank at the total value of USD 70 million. The source of the deal’s financing is unknown. The businesses of Grisha Ganchev, who was invited to enter the Petrol Management Board by the majority shareholder of Corporate Commercial Bank Tsvetan Vasilev in the spring of 2014, traditionally work with the bank under special supervision and First Investment Bank, while in September Investbank issued guarantees to Petrol within delivery contracts with Lukoil. Vasilev has said on numerous occasions that Petrol was among the assets because of which the bank was attacked.
Source: Capital (21.10.2014)

Over half of deposits at Commercial Bank Victoria were repaid on Friday when the financial institution opened for the first time since June. One of the ombudsmen at the bank under special supervision by the Bulgarian National Bank (BNB), Hristina Samova, announced that the total volume of transactions carried out at the bank on Friday was BGN 97.735 million. The total volume of deposits at the bank – guaranteed and not guaranteed – is BGN 160 million. The funds for the repayment of the deposits at the bank – guaranteed and not guaranteed – were collected with the sale of part of its crediting portfolio. On November 19 the BNB announced that three banks were selected as buyers – Tokuda Bank, Societe Generale Expressbank and Central Cooperative Bank.
Source: Capital (15.12.2014)