The issuance will consist of 40,000 securities of 1,000 euro in par value each, with the bond to be listed under the ticker EUBA, Eurohold Bulgaria said in a bourse filing.
The seven-year secured, non-convertible bond is due on March 8, 2029 and has a fixed annual coupon of 3.25%, with interest payments due semi-annually, according to the bond prospectus published last week.
In the short to medium term, Eurohold Bulgaria expects investments that may require financing to be limited to providing financial support to subsidiaries through capital increases in the event of a need to improve their capital structure or solvency, it said in the prospectus. One such investment was the 15 million levs ($8.3 million/7.7 million euro) capital increase of Bulgarian insurance subsidiary Euroins to expand the company's footprint in Greece and Poland.
TBI Bank has been nominated to act as trustee for the bond issuance, one of three current ones by Eurohold.
The Bulgarian financial regulator approved the issuance on Thursday, it said in a separate statement last week.
Last year, shareholders in Eurohold Bulgaria authorised the board of directors to carry out a financing transaction worth between 75 million euro and 100 million euro at an annual yield formed by a fixed margin of up to 12% and a floating component determined either on the basis of the Euribor or with a short-term interest rate. The maturity may vary between 3 months and 7 years, with proceeds to go towards Eurohold and its subsidiary Euroins Insurance Group (EIG).
In December 2022, Eurohold Bulgaria received bondholder approval to extend by 42 months the maturity of a 70 million euro medium-term Eurobond to June 7, 2026.
In June, Fitch Ratings affirmed at 'B' Eurohold Bulgaria's long-term issuer default ratingand removed it from rating watch negative, affirming a stable outlook.
($ = 0.9206 euro)