The first Bulgarian lev-denominated international bond, issued by the European Investment Bank (EIB), sold well says lead manager Bank Austria Creditanstalt (BA-CA). The bond’s price has appreciated by one percentage point since launch.
The BGN 100 million(approximately Euros 51 million) bond was placed with international as well as with domestic investors. International investors came from Austria, Germany, the UK and – to a high degree, says BA-CA – from Italy.
This bond issue, bearing a coupon of 4.875% p.a., was priced at 99.90% and matures 16 November 2009. BA-CA acted as lead manager and HVB Bank Biochim, its Bulgarian subsidiary, exclusively covered the Bulgarian market for this transaction.
This transaction represents another landmark in BA-CA’s track record in Emerging European bonds. Following a number of successful Bulgarian mortgage and bank bonds, BA-CA holds the number one position in the Bulgarian bond league tables.
“Close cooperation between the centres of competence and the local units in Central and Eastern Europe is our key to success,” says Heinz Meidlinger, Executive Director and Treasurer of BA-CA. “International expertise in transaction structuring, combined with local market knowledge, has put BA-CA in the position to successfully place issues internationally and domestically.”