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Fibank's Successful €50 Million Bond Placement

Fibank, known as the First Investment Bank, has made headlines with its recent achievement of successfully placing a private bond issue worth €50 million. This milestone is particularly significant as it demonstrates the bank's commitment to solid financial practices and regulatory compliance, specifically adhering to the Minimum Requirement for Own Funds and Eligible Liabilities (MREL).

The placement marks an ambitious stride forward for Fibank, as it continues to strengthen its position within Bulgaria's competitive banking landscape. The issuance of this bond is not merely a routine financial operation; it strategically reinforces Fibank's stability and enhances investor confidence. According to the bank's executives, meeting all regulatory MREL standards was already accomplished, but this move establishes an additional layer of financial security in current market conditions.

The bond attracted notable interest from a range of investors, particularly institutional ones. Subscriptions exceeded the offered amount, showcasing the robust trust investors place in Fibank's strategic direction and management. The bonds offer a fixed annual coupon rate of 7%, with a maturity date set in August 2029, promising a lucrative investment for bondholders. Additionally, the bonds are expected to be listed on a regulated market within six months post-issuance, thus enhancing their appeal.

Notably, this bond issue stands as a landmark achievement in Bulgaria's banking history, representing the largest local bond issuance to date by a Bulgarian-owned bank. Mr. Nikola Bakalov, CEO and Chairman of Fibank’s Management Board, highlighted the importance of this success by stating that the funds derived from the bond issuance will significantly contribute to advancing their development strategy, particularly in the retail and SME sectors.

With the potential to elevating Fibank's market position, the proceeds from this bond are earmarked to bolster the bank's growth strategy, further solidifying its role as a leader within Bulgaria's banking sector. As of mid-2025, Fibank has already shown impressive growth metrics, ranking fifth in Bulgaria's banking system by assets, totaling a substantial BGN 15.8 billion. Furthermore, the bank recorded a remarkable 169% increase in profit, reaching BGN 110 million by the end of the second quarter of 2025. This surge in profitability underscores Fibank's resilience and strategic adeptness in a dynamically evolving economic environment.

The strong interest exhibited by investors indicates not only their confidence in Fibank’s financial health and growth trajectory but also an optimistic outlook on the stability of the Bulgarian banking sector at large. The results of this bond placement reflect Fibank’s effective management and vision, which aims at boosting market positions, especially within retail banking, where it has witnessed significant growth. As Fibank continues to evolve and adapt to market changes, it positions itself for sustained success and leadership in the competitive banking arena in Bulgaria.

In conclusion, the successful placement of the €50 million bond is a significant step for Fibank and signals its readiness to tackle future challenges while contributing to the broader stability of the financial market in Bulgaria. Investors can look forward to increased returns, while Fibank is poised to leverage this crucial funding to fortify its strategic initiatives and maintain its competitive edge in the banking industry.