Project description
and objectives:
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Subscription to newly issued shares of First Investment Bank Ltd., representing 20 per cent of the Bank's capital in an amount not in excess of US$ 6 million (ECU 5.2 million).
The principal objectives of the project are to:
- increase FIB's capital base, thus further improving its capital adequacy and anticipating the Bulgarian National Bank's requirement for increased minimum capital for licensed banks;
- increase FIB's funding resources in its continued transformation towards a full-service universal bank;
- enable FIB to develop its loan portfolio, increase its term lending to private enterprises, and raise its single obligor limits;
- encourage international banks to open up their lending exposure limits to FIB and to Bulgarian banks in general.
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Transition impact:
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The EBRD will be promoting private enterprise and Bulgaria's transition towards a market-oriented economy, as FIB will use the proceeds of its capital increase to lend to its private sector clients. Furthermore, the project strengthens a healthy bank in an otherwise less than stable banking sector.
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The client:
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First Investment Bank (FIB), founded in 1993, is 100 per cent privately owned. The client's objective is to become a full-service corporate bank catering for the emerging private sector in Bulgaria.
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EBRD finance:
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The EBRD will subscribe to newly issued shares of FIB representing 20 per cent of FIB's capital.
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Total project cost:
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The aggregate subscription price will not be in excess of US$ 6 million (ECU 5.2 million).
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Environmental impact:
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FIB will carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks. In implementing these procedures, FIB will require its borrowers to comply with national/local health, safety, environmental and public consultation requirements. FIB will submit annual environmental reports to the EBRD.
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Technical
cooperation:
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None
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Laura Budreviciute, Operation Leader: budrevil@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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