| Date | Target | Vendor | Investor | Size | Comment |
|---|---|---|---|---|---|
| June 28 | Credit line for SMEs | Unionbank | IFC | EUR 5 mln | The facility will help extend the maturity of Unionbank's funding base. The credit line supports Unionbank in addressing Bulgaria's SME sector which accounts for more than 50% of GDP but still remains underserved by the banking sector. |
| June 28 | Acquisition of 26% stake in Bulgarski Imoti Non-Life and Bulgarski Imoti Life insurance companies | German insurance company HUK Coburg Holding | Austria's Wiener Staedtische Allgemeine Versicherung AG | n/a (Vienna-based sources estimate it at some EUR 35-45 mln) | After the transaction Wiener Staedtische's stake in Bulgarski Imoti group, consisting of general insurance and life insurance divisions, swells to 93.6%. The general insurance arm of Bulgarski Imoti reported Q1 '05 premium revenue of BGN 3 mln and a 1.3% market share in the country and the life insurance division had BGN 0.55 mln in premium revenue and a 1.7% market share. |
| June 27 | Two new outlets by the end of the year | Montana and Sofia Municipalities | Billa | Over EUR 10 mln | The Austrian company intends to open 8 stores annually until 2008, targeting population centers with over 40,000 citizens. Since entering Bulgaria in late 2000, Billa has launched 15 outlets to the tune of BGN 100 mln. The company reported a 30% jump in local sales in 2004 and expects to keep the same growth rate in 2005. |
| June 27 | Share capital increase | Investbank | Investbank | BGN 20 mln (EUR 10.2 mln) | Investbank expects its assets to double in 2005 from BGN 157 mln as of the end of 2004. It also plans to expand its 45-branch network, after opening 15 new branches in 2004. |
| June 27 | To open a factory for automotive and marine components manufacturing | Iliantsi industrial zone | Consilium, Sweden | Over EUR 5 mln | Consilium has already rented a 2,000 sq.m factory outside Sofia and will start installing the production facilities in August '05. The expected annual output of the plant is EUR 10 mln. |
| June 25 | Privatization of Boyana Film company | Privatization Agency (Government) | Nu Image, USA | BGN 12.2 mln (EUR 6.25 mln) | Nu Image acquires 95% of Boyana film studios. The US company will invest another BGN 30.5 mln to upgrade the movie studios. |
| June 23 | Real estate purchase in Sofia | Sofia and Bansko Municipalities | Bulgarian Property Developments PLC | n/a (estimated at EUR 3-3.4 mln) | The company has bought 5 sites in Sofia and 1 in Bulgaria's leading ski resort Bansko (total area of some 12 ha) for the purpose of building commercial centers to user's specifications with the view of having sale or lease arrangements. |
| June 22 | 30% stake in the Bulgarian supermarket chain Familia | Familia | Equest Partners, UK | EUR 26 mln | Equest aims to turn the chain into the leading domestic food retailer. Familia's goal is to have some 100-150 stores across the country in the next 2-3 years. Currently, Familia has 17 stores in Sofia. |
| Deals, contracts, tenders and outsourcing for a total value of more than BGN 2 mln. and projects of strategic interest to Bulgaria | |||||
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| GOVERNMENT AND EU | REAL ESTATE AND FINANCE | EU TOPICS | |||
| Date | Subject | Institution | Comment |
|---|---|---|---|
| June 28 | Investors hope Bulgaria will form new government quickly | Analysts | A three-party coalition is the most probable outcome which will keep intact the set of economic policies that Bulgaria is pursuing. |
| June 28 | Bulgaria's June business sentiment index rose by 3.8 points from the previous month | National Statistics Institute (NSI) | Business sentiment index reached a long-term maximum of 35.4% since 1994. This is due to the strong development of all sectors of economy. |
| June 28 | Two international consortiums file non-binding offers to build a new nuclear power plant worth around EUR 2.5 bln | State power utility NETC | A Framatome ANP and AtomStroyExport consortium and a tie-up between Skoda, Citibank, Unicredito and the Czech Komercni Banka in competition for the building of the 2,000 MW plant. The first reactor is expected to become operational in 2011 and the second in 2016. |
| June 28 | Bulgaria to grant 35-year concession on Danube port terminal at Silistra | Transport Ministry | The concessionaire should be ready to invest at least BGN 3 mln to build the terminal in a year and a half. Candidates should have assets of at least BGN 6 mln and revenue no less than BGN 15 mln for at least one of the past 2 years. |
| June 27 | ProCredit Bank to issue credits of up to BGN 20,000 to SMEs without need for collateral | ProCredit Bank | Up to 5 years for investment loans and up to 3 years for working capital loans for companies in trade, services and manufacturing. |
| June 27 | Balkan Holidays expects 15% increase in British tourists this summer | Balkan Holidays | The company achieved a 70% yoy growth in winter resorts packages sales in '04-'05. British tour operators indicate that British tourist arrivals in Bulgaria will rise by 20% to 260,000 in '05 following the 50% growth recorded in '04. |
| June 27 | Next month Bulgaria will call back all outstanding Front Loaded Interest Reduction Bonds (FLIRBs) | Finance Ministry | Bulgaria will retire earlier its FLIRBs with a par value of USD 607.64 mln. These are the last type of Bulgarian Brady bonds left in circulation, after the country retired earlier its DISCs and IABs in the past 11 months. |
| June 27 | Positive mood keeps Bulgaria debt stable after election | Debt market analysts | As the current ruling party will surely participate in the next government, which guarantees continuation in the foreign policy, investors remain assured in the country's policies and timely EU accession. |
| June 27 | Bulgaria on track for S&P rating upgrade despite inconclusive election | Standard & Poor's | For the last 3 years, Bulgaria's credit ratings have been upgraded 12 times (Moody's, S&P, Fitch and JCRA), which proves the country's progress in providing favourable investment conditions. |
| June 26 | Socialists win Bulgaria's general election, face tough coalition talks | Partial results | Though Socialists won general elections, their only option to receive a mandate for the next government is through forming a coalition with at least one other party. |
| June 24 | Bulgarian Posts to tender BGN 8.0 mln building in downtown Sofia | Bulgarian Posts | The building, located on a 15,750 sq.m plot, has a total built-up area of 19,000 sq.m. Bidders must apply by June 30 and pay a deposit of BGN 8,000. |
| June 23 | Bulgaria To Bid for 2014 Winter Olympic Games | Sports Ministry | Bulgaria's 3rd bid ever for Winter Olympics will support the further development of winter tourism in the country. |
| June 23 | The Bulgarian government approve strategic sell-off of 100% of defence supplier VMZ to a strategic investor | Government | Only strategic investors with prior experience in military production, trade in military produce or the use of military equipment will be invited to take part in the two-stage competition. These activities should have fetched them over EUR 50 mln in revenues in the past 3 years. The buyer will have to retain more than 51% in the plant for five years after the sell-off deal. |
| June 23 | Bulgarian Oktopod-S to get 30-year operating concession on Bulgaria's Somovit freight terminal at the Danube port of Ruse | Government | Oktopod-S will invest BGN 2 mln in the first 2 years of the concession and BGN 7 mln in the first 10 years. The average annual cargo turnover target for the first 10 years is 362,500 tons. |
| News and events important for investors related to the Bulgarian legislation, government and EU policy, financial and real estate sectors. | |||
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US-based film studio Nu Image has won a government tender to acquire a 95% stake in Bulgaria's state-owned Boyana Film production company Nu Image competed with the UK Ealing Studios Enterprises and the German Bavaria Film. |
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| Showcase of important issues, deals, and events. | |
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June 29, 2005