August 24 (SeeNews) - Bulgaria's First Investment Bank [BUL:FIB], or Fibank, said that it issued 10 million euro ($9.95 million) bond through a private placement, under its ongoing one-year bond issuance programme worth up to 100 million euro.
The debt paper, which attracted strong investor interest, is the first tranche of the second series under the programme, or the fourth tranche in all since the start of the bond issuance, Fibank said in a stock exchange filing on Tuesday.
The latest issuance of perpetual, non-cumulative, uncollateralised, deeply subordinated and non-convertible bonds takes to 40 million euro the total placements under the programme, which began late last year.
The tap issue, or additional placement at the same terms as previous ones, meets the requirements for additional Tier 1 capital and is listed on the regulated market of the Luxembourg Stock Exchange, similarly to previous tranches.
The bond sale will enable the lender to optimise its expenditure, it said. The funds raised will be deployed towards the bank’s long-term credit strategy for small and medium-sized enterprises (SMEs) and private individuals as well as for the replacement of instruments indicated in the bond issuance programme, where possible.
The lender carried out its third bond placement under the programme in May, collecting some 2.87 million euro. That was preceded by two other tranches, of 10 million and 17.1 million euro respectively, placed between late December 2021 and early January 2022. The bonds have a fixed annual interest rate of 8% and no final maturity date.
($ = 1.00470 euro)
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