Press Releases

Bulgarian-American Credit Bank AD, Investbank AD, Vabo Internal AD have submitted within the deadline Non-binding offers for purchasing 100% of the share capital of CB Victoria EAD and the overall exposure of the sole owner to the Bank. Forthcoming are analysis and assessment of the offers and the candidates admitted to the next stage of the procedure will be provided the opportunity to carry out a due diligence of CB Victoria EAD on the basis of which to present their binding offers for purchasing 100% of the share capital of CB Victoria EAD and the overall exposure of the sole owner to the Bank.

After the expiry of the deadline for submission of Letters of Interest in relation to the Sale Procedure of 100% of the share capital of CB Victoria EAD and the overall exposure of the sole owner to the Bank, the Letters of Interest received, the provided accompanying information and the profiles of candidates – potential investors were subject to analysis and assessment. The four candidates that submitted Letters of Interest: Bulgarian-American Credit Bank AD, Investbank AD, Vabo Internal AD and the group of investors acting in concert – Kerbler Holding GmbH, Imfarr Beteiligungs GmbH and Green Finance GmbH, are invited to the next stage of the sale procedure of 100% of the share capital of CB Victoria EAD.

The deadline for submission of Letters of Interest in relation to the sale of 100% of the share capital of CB Victoria EAD and the overall exposure of the sole owner to the Bank expired on 21 July 2017 at 14:00 h. Local time (13:00 h. Central European time). There are four candidates that showed interest as follows: Investbank AD Bulgarian-American Credit Bank AD Kerbler Holding GmbH, Imfarr Beteiligungs GmbH and Green Finance GmbH – group of investors acting in concert Vabo Internal AD Analysis and assessment is impending in regard to candidates’ profiles, the provided thereby Letters of Interest, including accompanying information as well as consultation with the supervisory authority – the Bulgarian National Bank.

The Bulgarian Deposit Insurance Fund (BDIF) has made a partial early repayment of BGN 30 million from the loan extended from the central budget under the Contract for granting a loan signed between the Republic of Bulgaria and the BDIF of 03.12.2014 for the purpose of financing the shortage of funds of the BDIF to pay the insured deposits in Corporate Commercial Bank AD after its licence was revoked. The loan has ensured the smooth process of payment of the insured deposits in the bank. This is the second partial early repayment under the loan wherewith the total amount of the principal repaid early by the BDIF has reached BGN 1.175 billion. The BDIF intends to repay the outstanding principal of BGN 500 million before maturity, too. The next partial early repayment will be made after the bankruptcy court pronounces a final ruling on the appeals filed against the first partial account for distribution of the cash available among the creditors of Corporate Commercial Bank AD (in bankruptcy), as approved by the BDIF. The amount of the loan under the Contract is up to BGN 2 billion, of which the BDIF has utilised BGN 1.675 billion. The interest is fixed at a rate of 2.95% and the interest payments are made once a year, on 15 April. The repayment of the loan is one-off – on 15.04.2020, with the option of early repayment in full or in part. The total amount of interest paid under the loan during 2015-2017 is BGN 104,572,246.58.

The BDIF Management Board with a resolution of 29 June 2017, pursuant to Art. 87, para 5 in relation with paras 8 and 9 of the Law on Bank Bankruptcy authorized the Assignees in Bankruptcy of Corporate Commercial Bank AD (in bankruptcy) – KTB AD (b), to open a procedure for sale of 100% of the share capital of Commercial Bank Victoria EAD and the overall exposure of the sole owner to CB Victoria EAD. 21 July 2017 is the time line for submitting Letters of Interest for the acquisition of 100% of the share capital of Commercial Bank Victoria EAD and the overall exposure of the sole owner to CB Victoria EAD. With a view to guarantee transparency of the procedure for sale of CB Victoria EAD the marketing document for the investment opportunity together with an accompanying letter are posted. The marketing document is presented solely for the purpose of informing prospective buyers about the existing investment opportunity. Both documents are available HERE.

All banks – members of the deposit guarantee system in Bulgaria, transferred within the statutory deadline of 31 May 2017 their annual premium contributions for 2017 totaling BGN 153,362,236 (EUR 78,412,866) to BDIF.

BDIF Management Board set the lump sum of the annual premium contributions due by the member banks to BDIF for 2017 at BGN 153,362,236 (EUR 78,412,866) according to the requirements of BNB Ordinance No. 30 on Calculation of the Premium Contributions Due by Banks under the Law on Bank Deposit Guarantee (LBDG). In compliance with Art. 14, para 1 of LBDG and Art. 2, para 2 of Ordinance No. 30 not later than 1 May 2017 BDIF Management Board will set the amount of the annual premium contribution due by each bank for 2017, taking into consideration its risk profile and the amount of covered deposits with that bank. By 31 May 2017 according to Art. 14, para 5 of LBDG member banks shall transfer to BDIF the annual premium contribution due.

Early next week the Bulgarian Deposit Insurance Fund (BDIF) will make a partial early repayment of BGN 1.145 billion from the loan extended from the central budget under the Contract for granting a loan signed between the Republic of Bulgaria and the BDIF on 03.12.2014 for the purpose of financing the shortage of funds of the BDIF to pay the insured deposits in Corporate Commercial Bank AD after its licence was revoked. For this purpose, on 19.12.2016 the BDIF will utilise EUR 298.5 million from the government guaranteed loan extended by the European Bank for Reconstruction and Development and EUR 250 million from the government guaranteed loan extended by the International Bank for Reconstruction and Development (the World Bank); for the remainder the Fund will use its own resources to the amount of EUR 72.227 million. Thus the BDIF will optimise the structure of its funding, reducing substantially the interest expenditure, extending the maturity period of the utilised loans and diversifying the sources of funding. The amount of BGN 1.145 billion, that is repaid early, remains available in the fiscal reserve, while in the medium-term the resources may be used to repay liabilities. We would like to remind that the amount of the loan under the Contract is up to BGN 2 billion, of which the BDIF has utilised BGN 1.675 billion. The interest is fixed at a rate of 2.95% and the interest payments are made once a year, on 15 April. The repayment of the loan is one-off – on 15.04.2020, with the option of early repayment in full or in part. The total amount of interest paid under the loan during 2015 and 2016 is BGN 65,987,054.80. After making the planned partial early repayment, the BDIF intends to repay the outstanding principal of BGN 530 million before maturity, too. The loan was intended to ensure a smooth process of payment of the insured deposits in Corporate Commercial Bank AD, which was successfully done.

The full text of the announcement may be viewed here.

The full text of the announcement may be viewed here.