The International Bank for Economic Co-operation opened its credit history on the European market. IBEC has successfully completed its debut BGN-denominated bond issuance on the Bulgarian capital market, raising a 3-year unsecured funding for BGN 68 million (approx. EUR 35 million). The issue has a coupon of 1.15% per annum and is due 2024; it is rated BBB by Fitch. The transaction, facilitated by the Joint Lead Managers and Bookrunners Raiffeisenbank (Bulgaria) EAD and UniCredit Bulbank AD, attracted interest from diverse institutional investors in Bulgaria - credit institutions, pension funds, and asset managers.
IBEC is the first International Financial Institution (IFI), based outside the European Union, to issue local currency bond on the Bulgarian capital market, governed by the Bulgarian law, and only the second IFI to issue bonds in Bulgarian leva, after the European Investment Bank (EIB), which first launched such an issue within the framework of the international Eurobond program in 2004.
Bulgaria, one of the member countries of IBEC since the establishment of the institution in 1963, is one of the core markets for the institution. IBEC has focused its activity in Bulgaria on sectors of the local economy, with initiatives supporting energy and infrastructure projects, agriculture, telecommunications, the electronics industry, and industrial construction.
The successful deal allows the Bank in line with its mission of the development institution to create more investment opportunities for investors in Bulgaria. The funds of the emission will be used for financing projects in Bulgaria and other European member countries of the Bank.
«This is the first local currency bond issue outside the country where we’re headquartered – Russia. Previously, IBEC has successfully launched bonds on the Russian market in 2019 and now we confirm our successful approach in Bulgaria. Bulgaria is one of our leading markets and IBEC’s bond issuance will allow us to expand operations in the country», – noticed the Chairman of the Board, Denis Ivanov.
International Bank for Economic Co-operation (IBEC) - international financial institution established in 1963. Bank is operating under an intergovernmental Agreement registered with the UN Secretariat under № 7388. IBEC has 8 member countries: Bulgaria, Vietnam, Mongolia, Poland, Russia, Romania, Slovakia and Czech Republic. IBEC supports economic prosperity of member countries through interconnection of intra- and inter-regional trade operations and facilitation of financing projects that promote UN Sustainable Development Goals.
IBEC has been assigned the following credit ratings:
BBB (Stable) / F2 by Fitch on 09/03/2021
Ваа3 (Stable) by Moody’s on 24/01/2020
А- / AAA(RU) (Stable) by ACRA on 27/04/2021.
Raiffeisenbank (Bulgaria) was established in 1994 and is the first green-field investment in the Bulgarian banking sector. Raiffeisenbank is a fully consolidated subsidiary of Raiffeisen Bank International (RBI) AG. RBI regards Austria, where it is a leading corporate and investment bank, as well as Central and Eastern Europe (CEE) as its home market. 13 markets in the region are covered by subsidiary banks. Around 46 000 employees serve 16.8 million customers through approximately 2 000 branches, the vast majority of which are based in CEE.
UniCredit Bulbank is the leading bank on Bulgarian market. With its 3 600 employees, the bank serves its more than one million clients in all the segments – individuals and corporate.
UniCredit Bulbank is part of UniCredit - a successful Pan European Commercial Bank with a fully plugged in CIB, delivering a unique Western, Central and Eastern Europe network to its extensive and growing client franchise.