A bailiff to carry out second tender on Jan. 15 for the sale of assets of Repair–Reconstruction Enterprise Koehne, part of the Railway Infrastructure – Holding Company, owned by Vasil Bozhkov. The initial price is BGN 11.4 million. This is the second attempt for the public sale of the assets as the first one – in end-2011 – failed. Companies from the Railway Infrastructure – Holding Company have a total overdue debt of over EUR 33 million to United Bulgarian Bank (UBB), EUR 10 million of which loaned to Repair–Reconstruction Enterprise Koehne. The repayment of the credit was deferred in the beginning of 2010, but the company failed to meet the agreement and in September 2011 UBB levied a distraint upon the accounts of companies from the holding.
Source: Capital (09.01.2012)

Bailiff sells metallurgical plant in Pleven A private bailiff will sell the assets of the smelter in Pleven for BGN 4.87 million. The properties of Metacom SLZ JSC, which is the successor of the former metallurgical plant in the northern city and are grouped in two different production lines. From the office of the private bailiff explained that this is the third attempt to sell the assets, which form the entire housing stock of the company. The first group of properties includes 34 buildings, including foundries - basic and auxiliary, electrical substation factory, etc. All are valued at an initial price of BGN 1.32 million "At the request of the United Bulgarian Bank (UBB) - the original creditor, the property is delivered at a public auction with a price as all the properties together constitute "Enterprise for metal-processing," says the advertisement in the private bailiff’s office. The second group of assets includes mainly administrative, domestic and ancillary buildings and their evaluation for BGN 3.55 million. The original creditor is UBB as well, which requested the buildings to be grouped in a procedure because they are collateral for the contract to one company. Among the announced encumbrances are a series of mortgages in favor of the bank, as well as established right for use for a period of 3 years by Metacom SLZ JSC in favor of Invest Metacom SLZ JSC.
Source: Capital Dàily (20.01.2012)

Banks with Bulgarian capitals will increase their influence on the banking market in 2012, UniCredit Bulbank has forecasted. Foreign financial institutions that had gained an 84% share on the Bulgarian market in terms of assets in 2009 have reduced it to 77% in 2011. UniCredit noted that a further decrease of their share to 75% was likely in 2012. The reshuffle is no surprise as such a tendency has been observed for the past 3 years. Last November a Bulgarian bank – First Investment Bank (Fibank) ousted Postbank as the fifth largest financial institution on the Bulgarian market. Thus the five major Banks operating in Bulgaria became UniCredit Bulbank, DSK Bank, United Bulgarian Bank, Raiffeisenbank and Fibank. Postbank was ranked sixth, followed by Corporate Commercial Bank (CCB). International Asset Bank that is assumed to be a bank with Bulgarian owners has outstripped Bulgarian American Credit Bank (BACB). Central Cooperative Bank occupies the 10th position, while the state-owned Bulgarian Development Bank (BDB) assumed the prestigious 14th position. Other banks with Bulgarian capitals are Investbank, Municipal Bank and Teximbank. These are the banks that are expected to issue 25% of credits in 2012. UniCredit Bulbank has also forecasted that the assets of the five largest Bulgarian financial institutions would be reduced below 50% of the total assets of the bank system for the first time in 2012. UniCredit’s Chief Economist Christofor Pavlov told Investor.bg this would happen mainly due to Greek banks operating in Bulgaria. UniCredit also expects that the growth of crediting would intensify to 3.1% in 2012, while there will be a particular slowdown for deposits.
Source: Monitor (20.01.2012)

Agribusiness company Zarneni Hrani Bulgaria - Farin said on Thursday it will propose to its bondholders to restructure a 5.0 million euro bond issue. The company asked the bond’s custodian bank, United Bulgarian Bank, to call a meeting of bondholders to vote on a proposal to postpone by six months, until August 17, the next interest payment on the issue and to restructure payments on the principal, Zarneni Hrani Bulgaria – Farin said in a statement filled with the Bulgarian stock exchange. The decision for to seek restructuring of the bond issue was taken at a general shareholders’ meeting on December 21.
Source: Capital (10.02.2012)

Stilian Vatev was elected Chairman of the Board of Directors of United Bulgarian Bank (UBB). Vatev will be replaced on his post as CEO by Dimitrios Anagnostopoulos. Mr. Anagnostopoulos has vast experience in the banking sphere with his latest posts being member of the Board of Directors and Group Chief Risk Officer at Finansbank as well as Regional Credit Officer for Turkey, Egypt and South Africa for the National Bank of Greece (NBG). Mr. Vatev has been working at UBB since 1992 even at the time when it was acquired by NBG.
Source: Company information (28.05.2012)

Petya Dimitrova, Executive Director of Postbank, was appointed CEO of the bank, the financial institution announced. Dimitrova will assume the post of Anthony Hassiotis, who will on his part head the companies from the Eurobank EFG Group in Romania and Bancpost S.A. Hassiotis has been in charge of the Bulgarian subsidiary of Eurobank for 8 years and has successfully managed to conclude the merger with DZI Bank and strengthen the market position of the bank. Among other appointments - Petros Angelakis was appointed Deputy Chairman of the Management Board of Postbank. He was so far Deputy General Manager of the International Activities Division at Eurobank EFG. Changes in the bank’s management will come into force on 2 July. Last week reshuffles in the management of another Greek bank operating in Bulgaria were announced – United Bulgarian Bank (UBB). Its CEO Stilian Vatev was appointed Chairman of the Board of Directors while his post was assumed by Dimitrios Anagnostopoulos, who was so far Group Chief Risk Officer at Finansbank.
Source: investor.bg (29.05.2012)

Erste group Immorent launches a new office building on a market, hungry for good areas TAO, an office building of the Austrian company for financial services Erste Group Immorent îôèñ enters market in the capital city. Construction of Todor Alexandrov offices started at the peak of the crisis in 2009, when few dared to build and finished in time in which tenants are that tenants recovering. Export of jobs to Sofia continues. Todor Alexandrov offices attracts with modern office area with a great flexibility and comfort. The building has 670 square meters GLA, ten floors and is located within walking distance from the center of Sofia.
Source: Construction City (19.07.2012)

A supplier asked for the insolvency of Roads Holding Yet another infrastructure company controlled by Vasil Bozhkov is threatened with insolvency – an unknown construction company has asked for a bankruptcy procedure to be initiated for the Roads Holding. On 3 August the Groupstroy company, registered in the city of Levski, has filed and appeal at the Sofia City Court. The Roads Holding responded that it had no debts to Groupstroy. Representatives of the holding told the Capital Daily that in 2008 the company supplied it with concrete elements, but as it turned out that they were of poor quality, the company had to pay damages for the losses suffered. More than a year ago another company of Bozhkov – Moststroy, went bankrupt, mainly due to debts to United Bulgarian Bank (UBB). The Roads Infrastructure Holding Company asked for such procedures to be launched for some of its subsidiary companies. In September 2011, by request of UBB, the accounts of Roads Holding at UniCredit Bulbank and First Investment Bank (Fibank) were levied a distraint upon to the amount of BGN 7.6 million due to a debt of Infracom 2007 that the holding was a co-debtor to. In end-June the credit from UniCredit Bulbank was already overdue and under renegotiation. In the first few months of the year the credits of the Roads Holding from Fibank were also renegotiated. Asked on whether they were facing difficulties in repaying their loans the Roads Holding representatives said that that they had undertaken the necessary measures to meet their obligations. The report of the holding for the first half of 2011 shows a loss of BGN 2.6 million compared to BGN 6.4 million a year earlier. Its income almost halved to BGN 4.3 million. Debts with a redemption date in over 12 months amount to BGN 137.6 million or 5% more compared to end-June 2011.
Source: Capital (07.08.2012)

The claim for insolvency of Holding Roads Jsc, submitted by Grupstroy two days ago, was withdrawn, the company controlled by Vasil Bozhkov informed. The holding received a message by the company that had submitted the claim for insolvency informing that it had given up the procedure due to “lack of claims”. According to the balances of Holding Roads, the company has no liabilities to Grupstroy. As a whole, however, the holding is indebted. Last September UBB demanded that the holdings accounts in UniCredit Bulbank and First Investment Bank (Fibank) were seized because of an outstanding debt to Infracom 2007. At the edn of June, the company’s debt to UniCredit Bulbank was overdue and is being renegotiated. The company’s loans to Fibank were also restructured. Other road construction companies, controlled by Vasil Bozhkov, were also claimed insolvent. That is what happened to Moststroy because of debts mainly to UBB.
Source: Capital (09.08.2012)

More than BGN 50 mln paid in interest to citizens in six months by five banks A total of 15 out of the 29 commercial banks operating in Bulgaria and providing services to individuals and households paid over BGN 10 mln in interest on deposits in the first six months of 2012, posted Profit.bg, whose experts made their calculations on the basis of Bulgarian National Bank data. Among the five financial institutions that paid the highest amount of interest on deposits are: First Investment Bank, DSK Bank, Post Bank, Corporate Commercial Bank and United Bulgarian Bank. They paid over BGN 50 mln, or more than 57% of the entire amount of interest on deposits.
Source: Class (15.08.2012)

The subscription for the capital raise of Health and Welness REIT – Sofia ended successfully on 17 August 2012. This was announced by the company and the FINA-S Financial House. The total par and issue value of the 2,973,432 shares issued is BGN 29,734,320. It was deposited in an account opened by Health and Wellness at United Bulgarian Bank.
Source: Monitor (21.08.2012)

Eurolease Auto extends 10 mln euro bond redemption by 12 months Bulgarian leasing company Eurolease Auto said its bondholders approved a proposal to extend by a year the redemption deadline on a 10 million euro ($12.9 million) debt issue. The decision was adopted at a meeting on September 24 called by the bond’s custodian bank, UniCredit Bulbank, according a Eurolease Auto statement filed with the Bulgarian Stock Exchange on Monday. Under the proposed restructuring plan, Eurolease Auto should make one 250,000 euro principal repayment at the end of September 2012 and two 500,000 euro repayments in March and September 2013 respectively. The company has so far repaid 8.75 million euro on the five-year bond issued in September 2007. The bond carries an interest rate equal to the six-month EURIBOR plus 5.0%, but no less than 6.0% per year, the company said. Eurolease Auto, a subsidiary of Sofia-based financial and insurance group Eurohold Bulgaria, has placed five bond issues since 2007 worth a total of 28 million euro.
Source: Capital (26.09.2012)

Further EUR 150 million are planned for the small businesses in Bulgaria Some new EUR 150 million will be lent to SMEs next year, Capital Daily informs. The funds under OP Competitiveness will be granted by banks as part of the guarantee scheme of the JEREMIE initiative. The deadline for applying was from July 27 to September 28, 2012. The guarantee will cover 50% of potential losses on loans. According to the fund’s requirements the interest rate for SMEs will be calculated as a weighted average of two components – the interest rate offered by banks and the one required by JEREMIE (it will be 0%). SMEs should absorb the funds within 36 months. The banks granting loans under that initiative are UniCredit Bulbank, UBB, Raiffeisenbank, CIBank and ProCredit Bank. The volume they should grant is about EUR 400 million.
Source: Capital (04.10.2012)

Two of Greece's biggest banks, NBG and Eurobank, are in merger talks to create the country's biggest lender, Reuters reported on Friday. If the merger materializes, the lenders’ Bulgarian subsidiaries UBB (NBG) and Postbank (Eurobank) may also merge. Greece's banks are under pressure to merge after suffering steep losses from the country's debt restructuring, heavy deposit withdrawals and rising bad loans. Cash-strapped, they have no option but to swap shares in order to merge and create a large financial institution to stabilize the banking system and provide the cash flow for the economic rebound in the country. According to estimates of 24 Chasa daily, based on the latest BNB data (end-June 2012), a follow-up merger in Bulgaria will result in the creation of a real heavyweight on the local market. At the moment, UniCredit Bulbank is the nation’s largest bank in terms of assets – BGN 12.174 billion, while UBB and Postbank rank fifth and sixth with assets of BGN 6.553 billion and BGN 5.816 billion respectively. If the amounts of their assets remain unchanged, a possible merger between the two lenders will give birth to a bank with assets of BGN 12.369 billion. The new bank’s loan portfolio will be roughly around BGN 10.91 billion and its deposit base will be BGN 10.40 billion.
Source: Capital (08.10.2012)

UBB and its Greek owner gave extension on the loan for Fund estates Special investment purpose company Fund estates(the ex-Benchmark property fund) rescheduled old loans at UBB and its Greek owner, and borrowed a new one in order to complete one of its buildings. The new loan is for a maximum of EUR 331 603. Despite, its maturity is pretty short- till the end of the present year. The money will be used for completion of Rakovsky business center, which is situated at Rakovsky 124. Money for completion will be added to the other loans of the company. The value of the loan in NBG is up to EUR 25 million, guaranteed by fund’s property. The UBB’s loan is to the amount of up to EUR 1.5 million, also secured by properties. Maturity for its repayment already expired. The NBG’s loan is for a period of eight years and expires in July 2016. At the end of June, Fund estates ’ joint bank loans were to the amount of BGN 48.5million, all of which with a maturity date in 12 months ‘time. In March 2011 Bulgarian representation of European commission and European parliament concluded its purchase for EUR 9 million. Institutions have not still entered the building, though. Its total area is 4,662 square meters; it has 9 floors and underground parking, as well.
Source: Capital (08.10.2012)

Insurance company Armeec entered the Top 100 ranking of the largest insurance companies in Southeast Europe, taking the prestigious 21st spot. The ranking is done in three categories - companies, insurers and banks. A total of 21 Bulgarian insurers ranked, among them DZI General Insurance, Bulstrad, Lev Ins, Allianz Bulgaria, Bul Ins, UNIQA Insurance, Euro Ins , Energia and Victoria. 13 Bulgarian companies are among the leaders of the South-Eastern Europe in the SeeNews TOP 100 - Lukoil Neftochim occupies the prestigious 3rd place in the overall ranking, which gives it the first place in Top 100. The 6 th place in Southeast Europe is taken by Aurubis Bulgaria. The Top 100 also includes NEK, Bulgargaz, CEZ Electro Bulgaria, Mobiltel and others. Top 100 banks in Southeastern Europe include 18 Bulgarian lenders. UniCredit Bulbank is 7th and the rest that enter the Top 100 are DSK, UBB, Raiffeisenbank, FIB, Post Bank, Corporate Commercial Bank, SG Expressbank, Central Cooperative Bank.
Source: Standart (12.10.2012)

The company, which a few years ago was among the leading bread producers in Bulgaria is currently facing bankruptcy. Nilana stopped manufacturing two weeks ago. Nilana’s stands in stores are empty. Meanwhile, in the middle of the year Nilana’s subsidiary Hlebni Izdelia Poduene stopped payments on the issued in 2008 shares. United Bulgarian bank issued claim in the court for announcing the two companies in insolvency. The claim is on behalf of the bondholders and is a result of unsuccessful negotiations on deferral of the issue and commitment of debtor for collateral security. The sole chance for the two companies is immediate sale. There is a proposal for that by a candidate, who is to buy all companies form Nilana’s group and to rehabilitate business. Collateral security is still not present, though.
Source: Capital (22.10.2012)

Two large Bulgarian bread producers, Nilana and Hlebni Izdelya-Poduyane, are on the brink of bankruptcy after talks for their purchase have reportedly hit rocks, according to an announcement of the Bulgarian Stock Exchange. Back in June 2008, the Poduyane bakery emitted some EUR 6 million in bonds but recently stopped servicing its debt. The owner of the facility, Nilana, is also the credit guarantor. Now, the custodian bank United Bulgarian Bank (UBB) wants the company to be declared bankrupt. The assets of the bread factory in Poduyane (that stopped operating a month ago) are pledged as security for the bond issue and may not be sold without the agreement of the creditors. The other factory of Nilana is located in the Sofia residential district of Knyazhevo, but it stopped producing bread in end-2011. At the same time Hlebni Izdeliya managed to pay only part of the yield on its bonds assuring that it would transfer the funds in 30 days. The sum was paid on 9 January, but this was a signal for the company’s financial problems. In June the company failed to pay yield of EUR 210,000. It is outstanding until now, and this led to UBB undertaking action.
Source: Capital (14.11.2012)

The custodian bank of a 5.0 million euro ($6.5 million) bond placed by local agribusiness company Farin [BUL:9KDA] has called the paper for early redemption, a bourse filing indicated on Monday. United Bulgarian Bank (UBB) said in the filing it is taking this step because Farin did not comply with decisions taken at a meeting of its bondholders on November 23. Farin’s remaining obligations on the bond, including interest and principal payments, equal 4.02 million euro. UBB will call an extraordinary meeting of Farin bondholders where they will decide how to go about settling their claims.
Source: Capital (11.12.2012)