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Fibank's Successful €50 Million Bond Issue

Fibank (First Investment Bank) has recently made headlines by successfully placing a private bond issue valued at €50 million. This key move not only complies with the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) standards but also reflects the bank's proactive approach to bolstering its operational stability in a competitive market.

The recent bond issue marks a strategic enhancement for Fibank as it aims to reinforce investor confidence amid evolving financial landscapes. Having already met all regulatory MREL requirements, this issuance is a testament to Fibank’s sound financial management and strategic foresight.

In terms of demand, the bond attracted considerable interest, with subscriptions exceeding the anticipated offering, which signals a strong trust from investors, particularly institutional ones. This high demand underscores Fibank’s solid development strategy and its positive trajectory within Bulgaria’s banking sector.

Bondholders can expect a fixed annual coupon rate of 7%, with maturity set for August 2029. In addition to this, the bonds are structured as interest-bearing, dematerialized, non-convertible, unsecured, senior, unsubordinated, and easily transferable assets, with no prospectus required for the issuance terms.

Commenting on the milestone, Mr. Nikola Bakalov, the CEO and Chairman of the Management Board of Fibank, noted the historic significance of this issuance, describing it as the largest bond issued by a locally owned bank in Bulgaria to date. He stated, “This issuance confirms not only the stability of Fibank but also our growth prospects. The proceeds from this bond issue will be pivotal in supporting our development strategy, especially within the retail and SME sectors.”

Financial performance indicators also bolster the bank’s profile, with Fibank ranking fifth in Bulgaria’s banking system by assets, amounting to BGN 15.8 billion as of the end of the second quarter of 2025. Furthermore, the bank reported an impressive profit increase of 169%, achieving BGN 110 million during the same period. This financial growth is attributed to the bank’s robust retail banking performance, which is seeing the highest growth rates among other sectors.

Looking ahead, Fibank’s strategic initiatives, including the recent bond issue, are expected to further secure its position as one of Bulgaria's leading banking institutions. The anticipated listing on a regulated market within six months of issuance will further enhance its visibility and attractiveness to investors.

In conclusion, Fibank’s successful private bond issue signals a strong affirmation of the bank’s financial health and its commitment to fostering growth in Bulgaria's competitive banking landscape. With the backing of a dedicated investor base and a strong management team, Fibank is well-positioned for continued success in the coming years.