Vienna Insurance Group Beefs up Presence in Bulgaria Bulgaria’s Bulstrad, part of Vienna Insurance Group (VIG), has completed the acquisition of the country’s bancassurer UBB-AIG, VIG said on Tuesday. Simultaneously with the acquisition, a cooperation agreement with United Bulgarian Bank (UBB) has been signed, VIG said in a statement. UBB, owned by the National Bank of Greece (NBG) group, was Bulgaria’s fifth-largest bank by assets at the end of November 2015, according to statistical data of Bulgaria’s central bank. “As a result, Vienna Insurance Group has expanded its portfolio in Bulgaria, enhancing sales potential in the country as part of the Group’s multi-brand distribution strategy,” VIG said. “By acquiring UBB-AIG Bulstrad took advantage of the opportunity to strengthen its presence in the Bulgarian market and open up further customer segments,” commented Peter Hofinger, member of the VIG managing board. UBB-AIG posted net profit of BGN 1.38 M (EUR 700,000) on premium income of BGN 4.5 M (EUR 2.3 M) in 2014, according to the statement.
Source: investor.bg (06.01.2016)

Bulstrad creates NOVA Ins after the deal with UBB Bulstrad Vienna Insurance Group AD established a new company that will operate in the field of bancassurance. NOVA Ins AD is a fact a few days after finalizing the acquisition of the insurance company UBB AIG by Bulstrad Vienna Insurance Group. “NOVA Ins is the result of a key deal between Bulstrad and one of the largest commercial banks in Bulgaria - UBB. It opens new opportunities for partnership in bancassurance protection of numerous clients of UBB," reads the press release sent on behalf of the Board of Bulstrad. The new company enters Bulgarian insurance market as part of the "strategy of the Vienna Insurance Group to expand its activities in Bulgaria and strengthening the potential for sales through distribution across multiple brands and distribution channels," the letter adds.
Source: investor.bg (13.01.2016)

Bulgarian banks' combined net profit rises to EUR 459 mln in 2015 The combined net profit of Bulgarian banks amounted to BGN 898 million in 2015, up by BGN 152 million as compared to a year earlier, the country's central bank said. The local banks continued to implement steps to reduce the credit risk in their balance sheets as by the end of December the gross amount of bad loans and advance payments in the banking system totalled BGN 11.026 billion. The banks' total assets stood at BGN 87.5 billion at the end of December, as their liquid assets ratio increased to 36.71%. The banks' deposits portfolio totalled BGN 74.4 billion at the end of 2015. Twenty-eight banks and branches of foreign banks operate in Bulgaria.
Source: Dnevnik (02.02.2016)

Chinese ReneSola sold two solar power plants in Bulgaria Chinese ReneSola sod two photovoltaic parks in Bulgaria to Luxembourg-based private investment fund Solar World Invest Fund SIF. The two facilities are located near Sliven and have a capacity of 5 and 4.7 Mega Watts. Parks are bought for a total of BGN 9.3 million, as separately they have loan to United Bulgarian bank for about BGN 20 million. The buyer has no projects in the country so far. The two parks are part of ReneSola’s long term assets. The deal is a combination of payment and transfer of a debt. Nove eco energy has been producing energy since August 2012. It is located at an area of 125 acres near Sliven. The other park MJ solar systems started operation in the middle of 2012, after it became ownership of Renesola. Last year, Renesola has sold other projects in Japan, China, UK and USA. SWIF strategy is to generate returns through investments in solar energy and by selling of their electricity. Each project operates as a subsidiary of the fund.
Source: Capital (29.03.2016)

UBB asset management launches three new mutual funds Management Company of United Bulgarian Bank established three new mutual funds -Global Children's Fund, Global Dividend and Global growth. The first is offered from the end of March, as the other two will be active by the end of April. With them UBB asset management’s management funds will become nine. Global Children's Fund will invest in shares of companies that are engaged with products and services related to nurturing of kids. Global Dividend direct funds to shares of companies with dividend policy as Global growth will redirect funds to companies that reinvest their profits to development activity. Minimum size of investment in the three funds will be BGN 100. Annual tax for management will be 2.5% from average net size of assets.
Source: Capital (04.04.2016)

Creditor Banks will again try to take their money from Technogips Another attempt for sale of real estate of producer of plasterboard Technogips will be made by private enforcement officer. Procedure is at the request of United Bulgarian bank and Unicredit Bulbank due to overdue loans and is organized for the second time. Claims of financial institutions are associated with a loan of EUR 33 million, which is secured by real estate and equipment of the plant. As of the end of March the loan has plummeted to closely EUR 47.8 million. The enterprise’s real estate is announced for sale in two separate ads. The very company is located near the village of Kovachevo, Radomir municipality. The first one includes 14 production buildings with different functions and overall built up area of 25 thousand square meters, announced for sale for BGN 13.2 million. The second ad is for the land which has an area of nearly 72 acres and is estimated at BGN 1 million. Proposals from potential buyers are accepted until May 9th. The very plant is completely new and has modern equipment. Its products include various panels and gypsum plasterboard, mortars and plasters produced from the waste product of the sulfur purifying installations of the nearby TPP Maritsa Iztok 2. It went into operation in 2009. The plant continues to operate at the moment, too.
Source: Capital (08.04.2016)

Unicredit Bulbank bought properties of its owner Technogips Land and buildings of factory for plasterboard Techogips are bought from one of the two big creditors and sellers- Unicredit Bulbank. The offered price was around BGN 18 million. Through the deal the bank takes back the site so that if the operator stops paying it might easily and fast sell the asset to someone else. The plant which is from the Balkanstroy group has retarded payments under Unicredit and UBB’s loan for years. Land and plot of the factory now are out of risk for the bank, though question for machinery remains pending. It’s the second attempt to sell Technogips’ land and building, after last February no tender was organized. The factory was built and equipped with a EUR 33 million loan from Unicredit Bulbank and UBB which was secured by immovable and movable property of the enterprise. As of March the loan reached nearly EUR 47.8 million.
Source: Capital (16.05.2016)

Interest rates on deposits freeze Interest rates on deposits will not rise, predicted Ivan Kutlov, Head of Treasury department at UBB, during the seventh edition of the forum "The sound of money." "This environment of low interest rates in Europe will likely continue for at least another year and a half or two," said Kutlov. According to the latest data of the Bulgarian National Bank (BNB) for April 2016, interest on deposits of Bulgarian households have risen. In March, interest on deposits in BGN was 1.13%, and a month later the banks gave on new deposits 1.17%. On a monthly basis is observed price increase in deposits in EUR. In the third month of this year, the interest received by Bulgarians was 0.78%.
Source: Monitor (03.06.2016)

S&P raises United Bulgarian Bank to B, outlook stable Standard & Poor's has upgraded its long-term counterparty credit rating on United Bulgarian Bank (UBB), a unit of the National Bank of Greece (NBG), to B from B- and affirmed its C short-term rating. The outlook for UBB, Bulgaria's fifth largest lender by assets, is stable, reflecting S&P's expectation that the bank will "maintain a stable financial and liquidity profile in the next 12 months, with limited contagion risk from its parent," the global rating agency said in a statement late on Monday. S&P also said in the statement: "The rating action reflects our view of UBB's strengthened capital-absorption capacity and our expectation that the bank will maintain strong levels of capitalization, supported by earnings contribution to its capital base in the low-growth environment. We forecast that our risk-adjusted capital (RAC) ratio for UBB will remain comfortably above 10% in the next 18 months, with a RAC ratio of 13.2% at year-end 2016. The bank continues to comfortably meet regulatory ratios, as reflected by its 26.9% Tier 1 and 28.8% total capitalization ratios as of March 31, 2016, well exceeding the regulatory minimum of 11.5% and 13.5%, respectively. Thus, we have revised our assessment of UBB's capital and earnings to strong from adequate. In our view, in 2015 and the first quarter 2016, UBB demonstrated stable financial performance. We expect UBB will sustain its profitability, despite a challenging domestic and global operating environment characterized by low domestic GDP growth prospects of an average of 1.6% in 2016-2019, low consumer demand and investor activity, and deflation. We expect return on equity (ROE) will be about 5%-6% in 2016-2017. The bank achieved ROE of 4.2% in 2015 and 9.4% in the first three months of 2016. We believe that UBB's contagion risk from its parent, National Bank of Greece (NBG), has been contained by Bulgarian regulatory actions and controls through the prevention of capital or liquidity outflows to the parent, such as: UBB liquidating its exposure to NBG, except a ˆ52 million subordinated loan to be repaid by year-end 2017 through annual installments, which accounted for about 2% of UBB's funding as of March 31, 2016. UBB liquidating most of its interbank exposures with NBG. As part of the prevention of capital outflow mechanisms, UBB not being allowed to pay any dividends to NBG in 2014 and 2015. UBB containing the outflow of customer deposits during 2015. Its total deposits increased by 1.4% to May 1, 2016, from year-end 2014. UBB maintaining a high ratio of liquid assets to customer deposits of 36% as of May 1, 2016. We consider UBB to be an insulated subsidiary of NBG, and, given the strong regulatory actions by the Bulgarian regulator, we have delinked our long-term rating on UBB from the group credit profile of NBG, which is currently 'SD' (selective default). We continue to reflect possible contagion risk from NBG in our assessment of UBB's business position and liquidity. Our moderate business position assessment continues to reflect concerns on reputational contagion risk on the bank's franchise and our view of possible reduced prospects for UBB to attract customers, due to its ownership by the Greek bank. Our moderate liquidity assessment continues to reflect concerns of potential customer deposit outflows from UBB due to uncertainties related to its ownership. Thus, we also affirmed our 'C' short-term rating on UBB. Positively, in the second half 2015 and the first four months 2016, the bank saw some growth in retail deposits, which enabled it to show only a 2.3% decline in retail deposits from year-end 2014 to May 1, 2016. This compares to retail deposits outflows by 5.5% in the first half of 2015, reflecting contagion risk from its parent NBG. Corporate deposits, including government entities and nonbank financial institutions, increased by 12% from year-end 2014 to May 1, 2016. Thus, total deposits increased by 1.4% from year-end 2014 to May 1, 2016. We will continue to closely monitor the balances of retail and corporate deposits at UBB, but do not expect significant outflows in the rest of 2016, according to our base-case scenario. The stable outlook on UBB mainly reflects our expectation that the bank will maintain a stable financial and liquidity profile in the next 12 months and be able to contain contagion risk from its parent NBG, assisted by the Bulgarian National Bank's preventative actions. We also expect continued positive developments in UBB's financial and business profile over the next two to three years. We could lower the ratings on UBB in the next 12 months if: contagion risk were to materialize and erode UBB's stand-alone credit profile, especially with regard to weakening funding and liquidity from material deposit outflows; UBB's business continuity was threatened by adverse developments at the parent; or economic and industry risks in the Bulgarian banking sector increased substantially. We could upgrade UBB in the next 12 months if we see a marked reduction in contagion risk from NBG, either due to NBG's improved financial standing or the sale of UBB to a more creditworthy investor. At the same time, we would expect to see UBB demonstrate stable funding and liquidity metrics, with a reversal in the negative trend in economic and industry risks for Bulgarian banks."
Source: Capital (29.06.2016)

Fitch affirms two Bulgarian banks, upgrades UBB to 'B+' Fitch Ratings said it affirmed the long-term issuer default ratings (IDRs) of Raiffeisenbank (Bulgaria) at 'BBB-' with a negative outlook, and of First Investment Bank (FIBank) at 'B-' with a stable outlook while upgrading the long-term IDR of United Bulgarian Bank (UBB) to 'B+' from 'B' with a stable outlook. At the same time, Fitch has upgraded Raiffeisenbank (Bulgaria)'s viability rating (VR) to 'bb' from 'bb-', and UBB's VR to 'b+' from 'b', the rating agency said late on Wednesday. Fitch has also affirmed FIBank's VR at 'b-'. The affirmation of Raiffeisenbank (Bulgaria)'s IDRs reflects Fitch's opinion that there is a high probability that the bank would be supported, if required, by its parent, Fitch said. The affirmation of FIBank's ratings reflects no major changes in its financial metrics since our last review in May 2016 while the upgrade of UBB's long-term IDR reflects the upgrade of its VR. Fitch also said in its statement: Raiffeisenbank (Bulgaria)'s IDRs are based on potential support from its 100% owner, Raiffeisen Bank International (RBI). Fitch believes that there is a high probability that Raiffeisenbank (Bulgaria) would be supported, if required, by RBI due to its strategic importance to the parent, given RBI's strategic focus on the CEE region, Raiffeisenbank (Bulgaria)'s strong integration into the parent group and the track record of significant funding provision in the past. The potential cost of support would be easily manageable for RBI given Raiffeisenbank (Bulgaria)'s small size. The Negative Outlook on Raiffeisenbank (Bulgaria)'s Long-Term IDR reflects Fitch's view that the balance of risks for RBI's credit profile are on the downside. UBB's and FIBank's IDRs are driven by their standalone financial strength, as expressed by their VRs. FIBank's and UBB's Support Ratings (SR) of '5' and Support Rating Floors (SRF) of 'No Floor' reflect Fitch's opinion that potential sovereign support for the banks cannot be relied upon. This is underpinned by the EU's Bank Recovery and Resolution Directive (BRRD), transposed into Bulgarian legislation, which provides a framework for resolving banks that is likely to require senior creditors participating in losses, if necessary, instead of or ahead of a bank receiving sovereign support. Support for UBB from its 99.9% shareholder, National Bank of Greece (NBG) cannot be relied upon given that NBG is currently in default. VRS Raiffeisenbank (Bulgaria)'s and UBB's standalone profiles are supported by their moderate risk appetites, substantial capital buffers, solid deposit-based funding and ample liquidity. Raiffeisenbank (Bulgaria)'s higher VR is underpinned by its significantly better asset quality and improving profitability. The upgrades of both banks' VRs are largely driven by their gradual reduction in legacy impaired loans, which is likely to continue in 2016 and beyond. FIBank's VR reflects its weak capitalisation relative to significant concentrations in its loan book and low reserve coverage of a large stock of impaired exposures, resulting in significant unreserved impaired loans relative to Fitch Core Capital (FCC). The rating also reflects a high share of impaired exposures and repossessed assets on FIBank's balance sheet as well as weak, albeit improving profitability. At the same time, the rating also considers positive changes in the bank's corporate governance and risk management framework; and a recovery in the funding base and liquidity position. The operating environment for Bulgarian banks is likely to remain difficult in 2H16 and beyond due to subdued credit demand, low interest rates and growing competition for a limited number of borrowers in a small market. We believe that the central bank's on-going sector-wide asset quality review (AQR) and reforms to the supervisory framework should help restore public confidence in the banking sector after the bankruptcy of a large domestically-owned bank. Fitch expects loan book quality to further improve at Raiffeisenbank (Bulgaria) and UBB in view of the ongoing progress with portfolio cleaning. The inflow of new bad debts should remain contained at the two banks, assuming no economic stress. This reflects selective approaches to the origination of new loans, already seasoned legacy loans and modest expansion plans. At end-2015, IFRS impaired loan ratios stood at around 11% at Raiffeisenbank (Bulgaria) and a high 24% at FIBank and 30% at UBB (end-2014: about 14%, 12%, 37%, respectively). Raiffeisenbank (Bulgaria)'s markedly better asset quality primarily reflects its earlier loan book cleaning, conservative underwriting in new production and tight parental supervision. The high share of impaired loans at UBB in part reflects significant legacy commercial- and residential real estate lending. In Fitch's view, the substantial increase in the impaired loans ratio at FIBank in 2015 was driven by a more conservative and consistent application of impairment triggers rather than abrupt deterioration of underlying asset quality. On top of the large stock of impaired exposures, FIBank carries on its balance sheet a significant amount of repossessed assets (around BGN932m, equivalent to around 1.3x FCC), mostly in the form of real estate. These do not generate recurring income, negatively impacting profitability, and are likely to be only gradually monetised. Fitch views Raiffeisenbank (Bulgaria)'s and UBB's capitalisation as adequate in view of their moderate risk appetites, limited expansion plans, muted credit demand and relatively stable pre-impairment profit generation, which offset challenges stemming from the operating environment. The banks' capital buffers are sufficient to absorb even substantial additional loan provisioning that could result from the AQR. Raiffeisenbank (Bulgaria)'s capitalisation is also underpinned by potential ordinary capital support from the parent. FIBank's weak capitalisation is negatively affected by high unreserved impaired loans (at around 94% of FCC at end-2015) and large concentrations in the loan book (at multiples of FCC at end-2015). The unreserved impaired loans equalled around 16% FCC at Raiffeisenbank (Bulgaria) and about 58% at UBB. Subdued domestic credit demand, coupled with lower market interest rates, is affecting the profitability of Bulgarian banks. However, their results generally compare well with regional peers mostly due to still wide margins. Lending activity is unlikely to recover in 2H16 (especially among corporates) and margin pressure will increase since the room for further deposit rate cuts is limited. Refinancing risks at Raiffeisenbank (Bulgaria) and UBB are limited because they are self-funded with local customer deposits and hold ample liquidity buffers. Raiffeisenbank (Bulgaria) can also rely on ordinary liquidity support from its parent. Fitch believes that UBB's overall funding profile is moderately weaker since its (otherwise fairly strong) deposit franchise could be vulnerable to potential negative developments at its Greek owner. This was evidenced by increased deposit withdrawals at UBB in 1H15 due to intensification of the Greek crisis, as opposed to flight-to-quality at Raiffeisenbank (Bulgaria). UBB's deposit base has recovered since then and has recently been stable. At FIBank, liquidity has recovered and stabilised following significant deposit outflows in 2014, which triggered extraordinary liquidity support from the sovereign. This was fully repaid in May 2016. FIBank has a fairly granular deposit base with a large share of retail deposits, but these are mostly term deposits that are more expensive than current account balances. At end-2015, gross loans/deposit ratios shrank to around 81% at Raiffeisenbank (Bulgaria), 97% at UBB and 83% at FIBank. The banks' liquidity buffers (mainly cash, short-term interbank deposits and Bulgarian sovereign debt) relative to total customer deposits were considerably above the 20% regulatory minimum. RATING SENSITIVITIES IDRS, SUPPORT RATINGS UBB's and FIBank's IDRs are sensitive to changes in their VRs. A positive change in the sovereign's propensity to support banks, while not impossible, is highly unlikely in Fitch's view. An upgrade of UBB's SR would likely be contingent on a material strengthening of its parent's credit profile. A significant weakening of the ability and/or propensity of RBI to provide support (not expected by Fitch at present) could result in downgrade of the IDRs and SR of Raiffeisenbank (Bulgaria). VRS UBB's VR (b+) is above that of NBG (f), reflecting Fitch's view of only moderate contagion risk to UBB from the parent. This is based on UBB's self-sustainability in terms of funding and marginal direct credit exposure to NBG and Greece. At the same time, Fitch believes that a further upgrade of UBB's VR above the parent is unlikely given the potential sensitivity of UBB's deposit stability on developments in Greece. Raiffeisenbank (Bulgaria)'s VR could be upgraded further in case of an improvement of the operating environment, further progress with portfolio cleaning, and a pickup in profitability. FIBbank's VR could be downgraded in case of (i) a further marked deterioration in FIBank's loan performance or underlying asset quality, resulting in increased pressure on the bank's capitalisation; or (ii) renewed and sustained pressure on the bank's liquidity, if this is not offset in a timely fashion by external liquidity support. Upside potential for FIBank's VR is limited in the short to medium term given that the potentially positive impact of actions taken under the restructuring plan, including stronger internal capital generation, will take time to feed through and affect capitalisation, while legacy issues will weigh on the bank's risk profile.
Source: investor.bg (15.07.2016)

An office building and a residential building in Varna are for sale for BGN 4 million An office building and a residential building in Varna are being put up for sale by a private bailiff for the amount of BGN 4 million. Properties include 1.2 acres of land and other buildings. Fuel dealer "Gastrade" is declared as a debtor and lenders are United Bulgarian Bank and "Fueltrade." The starting price is just over BGN 4 million VAT included, and the deadline for submission of offers is 29th September. The main activity of "Gastrade" is wholesale and retail petroleum products. From the company’s statement in 2015 it is clear that last year, "Gastrade" acquired assets for BGN 8.6 million, which includes land, buildings and equipment in Beloslav. Sales revenue fell by 8% last year to BGN 122.9 million, but profit rose more than five-fold to BGN 4.6 million.
Source: Capital (31.08.2016)

The Bulgarian National Bank has reported that banks' profits by the end of July stood at BGN 909 million, BGN 295 million up year-on-year. According to BNB, an increase of lending is observed. The loans extended in July marked an increase by BGN 227 million compared to June. Consumer loans have increased by BGN 19 million and mortgage loans by BGN 16 million. Deposits continued to increase up to BGN 75,600 million. The positive trend comes after the inspections of assets and stress test results, which showed that the need for more provisions and capital have FIB and Investbank. The numbers shows that the five biggest banks - Unicredit Bulbank, DSK Bank, First Investment Bank, UBB and Postbank have generated over two thirds of the total profit of the banking system. The remaining BGN 266 million profits are distributed among the remaining 17 banks and five foreign bank branches.
Source: Dnevnik (08.09.2016)

United Bulgarian Bank and SG Expressbank granted BGN 28 million working credit to "Mini Maritsa Iztok" Mini Maritsa Iztok managed to find banks to grant it credit amounting to BGN 28 million. For the working capital credit the mining company ranked first the two banks - UBB and Societe Generale Expressbank, which will provide a total of BGN 28 million of overdraft credit. The major loan of BGN 20 million will be granted by Societe Generale Expressbank and will cover obligations to employees, taxes and insurance. The remaining BGN 8 million, which will be provided by UBB, are current payments and obligations to suppliers. The contracts with both banks are still not signed. Under the terms of the announced contest the repayment period is 12 months. The procedure for an investment loan of BGN 24.3 million is still pending for the approval of the Bulgarian Energy Holding.
Source: Capital (20.09.2016)

Bulgarian banking sector net profit jumps 46% y/y in Jan-Aug The combined net profit of Bulgarian banks for the first eight months of 2016 soared by 46% year-on-year, reaching 1.04 billion levs ($595.4 million/530.8 million euro), central bank data showed on Friday. The banks' net interest income dropped by 10.1% on the year to 2.22 billion levs during the eight-month period, whereas net fee and commission income grew 3.8% to 698 million levs, the data showed. The banking sector's total net operating revenue for the first eight months of 2016 grew 6.5% year-on-year to 2.77 billion levs. The banks' total assets added 6.1% year-on-year, reaching 90.1 billion levs at the end of August. The gross loan portfolio of Bulgarian banking sector totalled 55.5 billion levs as of end-August, unchanged from a year earlier. Deposits increased 6.4%, reaching 76.5 billion levs. A total of 22 banks and five branches of foreign banks operated in Bulgaria as of end-August 2016.
Source: Capital (03.10.2016)

Deutsche Bank and Goldman Sachs bought a stake in the owner of the Prestige 96 Germany's Deutsche Bank and Goldman Sachs US closed the deal on acquisition of London-based company of the Greek National Bank of Greece - NBGI Private Equity. It manages 11 funds with a total of 40 companies through private equity investments in venture capital and real estate investments. The transaction price is EUR 288 mln. The deal affects two assets in Bulgaria - Prestige 96 and Sofia The Mall. The deal was announced in early February and was being prepared half a year. The company for sweets Prestige 96 became the property of NBGI Private Equity Fund and Citi Venture Capital International US Citigroup in 2012. The price of the transaction was not formally announced then, but analysts estimate a sum of EUR 40-45 million paid for 90% of the shares. Stage Capital acquires minority stake in The Mall - previously owned by another Fund of National Bank of Greece. The big package of the mall is held by another Greek Fund - Assos Capital.
Source: Capital (04.10.2016)

AIG to sell its insurance business in Bulgaria US giant American International Group withdrew entirely from its insurance business in Bulgaria. Buyer of the package is the Canadian Fairfax Financial Holdings, as in the Bulgarian case involves a portfolio of corporate insurance contracts for about BGN 20 million. After the transaction with Fairfax the American group reserved two subsidiary businesses in the country: reinsurance and the outsource center for its global customers created three years ago. The total transaction value is approximately USD 240 million. According to data from the annual financial statements of the Bulgarian branch AIG recorded for 2015 premiums worth BGN 21.3 million and BGN 23.5 million for 2014.
Source: Capital (01.11.2016)

EIF signs guarantee deals with 5 Bulgarian banks in support of SMEs The European Investment Fund signed guarantee agreements with five Bulgarian banks which will generate a total of EUR 385 million of finance to small and medium-sized enterprises in the country. The agreements signed with United Bulgarian Bank, Raiffeisenbank Bulgaria, UniCredit Bulbank, Procredit Bank and CIBank, aim to improve access to finance for over 4,000 Bulgarian SMEs, including micro companies and start-ups, by ensuring that the banks committed to the SME initiative offer financing at lower interest rates. The five guarantee transactions are covering two-thirds of the target EUR 600 million of total SME funding available under the initiative. The SME Initiative is a joint programme blending support from the European Commission, EIB Group and EU member states with a view to stimulating SME financing by providing partial risk cover for SME loan portfolios originated by financial entities. Alongside European structural and investment funds contributed by member states, the SME Initiative is co-funded through Horizon 2020 resources as well as benefiting from EIB Group resources.
Source: mediapool.bg (21.11.2016)

UBB will allocate BGN 260 million as dividend As expected, the General Meeting of Shareholders of UBB decided all profits for 2015 to be paid as dividend. Recently it became clear that the owner National bank of Greece - NBG is seeking a buyer for UBB. There are forecasts that the deal could be completed by the end of the year. Thus, according to the decision the total amount of the dividend that will be paid to shareholders of the bank amounts to BGN 259.8 million, or BGN 3.42 per share. The General Meeting of Shareholders also decided to allocate the amount of BGN 840 thousand, representing gains of past periods, in reserve "Retained earnings". This decision is part of the bank's strategy to optimize shareholders’ capital, without affecting its capital stability. Payment of the dividend will commence after December 19th.
Source: Dnevnik (06.12.2016)

KBC and OTP bid for National Bank of Greece's Bulgarian unit Belgian bank KBC and Hungarian lender OTP Bank have made offers to acquire United Bulgarian Bank (UBB), the Bulgarian subsidiary of National Bank of Greece. NBG is seeking to sell UBB, Bulgaria's fourth largest lender, as part of its restructuring plan agreed with banking regulators to boost its capital position. " There are two offers, one by KBC and one by OTP," one source said. A sale to one of the two bidders is likely to be agreed by the end of the year. UBB had a book value of BGN 1.32 billion at the end of September. Its total assets stood at BGN 7.1 billion. However, earlier this month UBB, voted to distribute some BGN 260 million in dividends. The bank's core capital adequacy ratio will stand at 20 % of assets after the dividend payment from 29 % before and will achieve a better level of managed capital. OTP, which controls DSK Bank, said it was looking at acquisition opportunities and would wrap up at least one deal within the next three months. A KBC spokeswoman said the Belgian group was looking for opportunities in its core markets and Bulgaria was such a market.
Source: Other (09.12.2016)

KBC and OTP submitted price offers for UBB Both finalists KBC and OTP in the procedure for the sale of the United Bulgarian Bank submitted binding bids, the deadline for selection of exclusive buyer being the end of the year. At this stage there is no evidence what the price range of the offers is, but initial expectations are that due to an improved credit portfolio, especially as corporate candidates, the offer will exceed more than EUR 400 million, which equals about 60% of the bank’s capital. According to the latest data UBB is the fourth-sized bank on the Bulgarian market with assets of BGN 7.1 billion.
Source: Capital (12.12.2016)