Encouragement Bank placed successfully the biggest issue of corporate bonds of BDZ for the amount of EUR 120 mio in the Bulgarian economy. The funds of the issue will be used for reconstruction of freight wagons which will help BDZ to respond adequately to the increased demand for railway freight wagons as well as to restructures old debts.
The subscription of the bond issue started on 29th October with private placement. Manager of the of the bond issue was Encouragement Bank together with first class banks Dexia KommunalCredit Vienna, and Depfa Bank London. The organization and the placement of the bond issue are executed without any cost for BDZ.
There were 120 000 bonds issued with nomial value of EUR 1000. The interest by the investors exceeded the announced nominal value and orders reached the amount of EUR 135 mio. The bonds are placed to three foreign banks and two Bulgarian credit institutions.
The period of the bond issue is 10 years with 18 months grace period. Interest is to be paid every three months, and the amount of the interest is 3 months EURIBOR plus 3,5 % on annual basis.
