The Bulgarian Development Bank (BDB) issued and placed its second bond issue with a nominal value of EUR 20 mln., a 5 year maturity and a coupon of 5%. The lead manager of the bond was Raiffeisen (Bulgaria) EAD.
Proceeds from the bond will be directed towards financing of new, and refinancing of existing, infrastructure projects within the renewable energy and MSW treatment sectors.
The initial offering of the bond was carried out through private placement, primarily targeted at institutional investors. At a later stage the bond issue will be registered with the FSC and listed on the BSE - Sofia AD secondary market.
BDB’s capital base and attracted foreign resources position it as a local market leader in the provision of direct and indirect long-term investment financing. During 2009 alone, the BDB attracted over EUR 150 mln. from foreign financial institutions. The Bank, through its subsidiary, the National Guarantee Fund, also provides SME credit portfolio guarantees to local commercial banks.
