The Bulgarian-American Credit Bank AD has issued a new series of ordinary, interest-bearing, dematerialised, freely transferable, unsecured, non-convertible, subordinated bonds. These bonds are structured to meet BACB’s Tier 2 capital requirements in accordance with Article 63 of Regulation (EU) No 575/2013. The total nominal and issue value of the bond issue is €15,000,000. The term of the issue is 120 months, with the principal maturing on 3 June 2034. The bonds bear a fixed annual interest rate of 8.0%, with interest paid through annual coupon payments.

BACB conducted an initial private placement of the bond issue to a limited number of pre-selected professional investors – fewer than 150 – which saw strong interest from leading institutional investors, corporate clients, and individuals professional investors. The interest exceeded expectations, and there is hope for active secondary trading following the registration of the issue for trading on the Official Market of the Vienna Stock Exchange.

"This event is significant for BACB and the country’s banking debt market. Following our success at the end of 2022 with the placement of a €15 million debt issue meeting the MREL requirements, we have now achieved another success with exceptional interest and oversubscription. I thank the investors for their trust! We continue our strategy to be among the TOP 10 banks in Bulgaria. This bond will enhance our growth and expansion opportunities for our loan portfolio – as we traditionally finance green technologies and industries," commented Ilian Georgiev, Chief Executive Officer of the bank.

Recently, BACB reported its financial results for the first quarter of 2024. The bank's net profit amounted to BGN 16.332 million after tax, representing a 54.24% increase compared to the first quarter of 2023, demonstrating the bank's strong positioning in the changing economic environment. At the end of March, BACB's assets grew by 7.63% year-on-year, reaching BGN 2,880,758 thousand.

BACB has effectively managed and expanded its loan portfolio, achieving the highest growth in lending to individuals. Housing loans increased by an impressive 45.5%, compared to a 21% growth on the banking market, relative to the first quarter of 2023. The increase is driven by attractive interest rates and flexible financing conditions, making home purchases more accessible. The consumer loan portfolio grew by 33%, compared to a 13% increase for the sector, compared to March 2023, with a large portion of applications submitted through digital service channels.

In April 2024, BCRA - Credit Rating Agency AD (BCRA) upgraded the long-term financial strength rating of the Bulgarian-American Credit Bank from BB to BB+, changing the outlook from "positive" to "stable" and confirmed the short-term rating of B. The agency also confirmed the long-term national scale rating of BBB+ (BG) with a "stable" outlook and the short-term national scale rating of A-2 (BG).