August 28 (SeeNews) - Financial and insurance group Eurohold Bulgaria [BUL:4EH] said on Monday it will seek the approval of its shareholders to increase its capital by 40.3 million levs ($24.5 million/20.6 million euro) to 202 million levs and to issue a five-year 100 million euro bond.
Eurohold Bulgaria plans to issue 40.3 million shares with a nominal value of 1 lev each at a price of 1.3 levs apiece, the company said in a bourse filing.
The share issue will be considered successful if at least 20.2 million shares are subscribed for and fully paid for.
The shareholders meeting will be held on October 2.
The shareholders will also vote on a proposal to issue a five-year 100 million euro bond, which will carry an annual coupon of up to 8%.
If approved, this will be the company’s second tranche of corporate notes under its 200 million euro Euro Medium Term Note (EMTN) programme, approved by the Irish central bank in November 2016.
In December 2016, Eurohold Bulgaria issued 40 million euro worth of corporate notes under the EMTN programme.
"The funds' purpose is to support our main sub-holding company, Euroins Insurance Group, in order to better capitalize its insurance subsidiaries in the process of adapting to Solvency II directive," Kiril Boshov, board chairman of Eurohold Bulgaria, said at the time.
Euroins Insurance Group operates in seven European countries and has subsidiaries in Bulgaria, Romania, Macedonia and Ukraine.
Eurohold Bulgaria's portfolio includes companies in the financial services, leasing, insurance and car sales sectors.
(1 euro=1.95583 levs)