December 23 (SeeNews) - Bulgaria's First Investment Bank (Fibank) [BUL:5F4] said that it has placed a 30 million euro ($33.2 million) bond issue and intends to seek to raise further funds through a capital increase.
The non-convertible perpetual bonds carry an annual coupon of 8%, Fibank said in a bourse filing on Friday.
Fibank is also planning to offer 40 million shares for subscription at a price of 5 levs apiece. However, the price of the shares could be revised by the time the company completes its prospectus, Fibank noted. Fibank shares last traded on the Bulgarian Stock Exchange on Friday, at a price of 2.94 levs.
The minimum success threshold is set at 10% of the offered number of shares.
The lender intends to use the proceeds to support its strategy for expansion of its SME and consumer loan portfolios.
If the issue is fully subscribed, Fibank will increase its capital by 40 million levs to 150 million levs.
On December 19, Fibank signed deals to sell non-performing loan (NPL) portfolios with a total face value of some 538 million levs.
Earlier this year, the European Central Bank (ECB) said it has found a capital shortfall of 262.9 million euro at Fibank.
($ = 0.9023 euro)
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