Fibank successfully closed a record-breaking international placement for a Bulgarian bank, raising a total of EUR 310 million across two bond issues

Fibank (First Investment Bank) has successfully placed two bond issues on the international capital markets, raising a total of EUR 310 million. The transaction, completed on May 14, 2026, is notable as it represents one of the largest international capital placements by a Bulgarian bank in recent years. The bond issuance includes a €250 million tranche aimed at meeting the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) standards, alongside an additional €60 million hybrid capital instrument.

The €250 million bond is particularly significant as it aligns with regulatory requirements that ensure the bank maintains sufficient capital buffers to absorb potential losses. This issuance reflects Fibank's commitment to strengthening its financial position and enhancing its resilience in a competitive banking environment. The hybrid capital instrument, valued at €60 million, is designed to bolster the bank's Tier 1 capital, further supporting its growth strategy.

Investor interest in the bond issues was robust, with the order book being oversubscribed and achieving a bid-to-cover ratio of 1.5. This strong demand indicates a growing confidence among international institutional investors in Fibank's business model and long-term sustainability. The successful placement of these bonds not only underscores the bank's financial health but also highlights the positive perception of the Bulgarian banking sector as a whole, especially in light of Bulgaria's ongoing integration into the eurozone.

The bonds are set to be admitted for trading on the Luxembourg Stock Exchange, a leading platform for debt instruments, which will enhance their visibility and liquidity in the international market. Bank of America acted as the lead manager for this transaction, facilitating the structuring and placement of the bonds with global investors. This partnership reflects the increasing collaboration between Bulgarian financial institutions and international capital markets.

As of the first quarter of 2026, Fibank remains the largest bank with domestic Bulgarian capital, boasting assets of EUR 10.02 billion. The successful bond issuance positions the bank favorably for future growth, allowing it to leverage additional capital for potential expansion and investment opportunities. The broader implications of this transaction suggest a strengthening of the Bulgarian banking sector's reputation and an encouraging outlook for future capital raises as international investors continue to show interest in the region.