Fibank raises €310M in Bulgaria's largest international bond placement
What's the deal? First Investment Bank (Fibank), Bulgaria's largest bank with domestic capital, has placed two bond issues on the international capital markets worth a combined €310M — the most significant international placement ever carried out by a Bulgarian bank.
The deal comprises a €250M bond issue designed to meet minimum requirements for own funds and eligible liabilities (MREL), and a €60M hybrid capital instrument expected to qualify as Additional Tier 1 capital. Bank of America acted as lead manager.
The MREL issue was comfortably oversubscribed, with a bid-to-cover ratio of 1.5. Both issues are expected to be admitted to trading on the Luxembourg Stock Exchange.
Why now? Bulgaria's recent accession to the eurozone is a key factor. Fibank chief executive Nikola Bakalov said the deal "is also recognition for the Bulgarian banking sector and demonstrates increased confidence in the country following Bulgaria's accession to the eurozone."
As of March 31, 2026, Fibank ranked fifth in Bulgaria's banking system by assets at €10.02B, with capital and liquidity indicators exceeding regulatory requirements. The placement signals that Bulgarian banks are now able to tap international debt markets at scale.
What could go wrong? Bond issuances of this size carry refinancing risk — Fibank will need to service these obligations through market cycles. The bank's majority shareholders, Ivaylo Mutafchiev and Tseko Minev, have historically maintained tight control, and international bondholders may push for greater transparency and governance standards.
Bulgaria's eurozone membership is still fresh, and any economic turbulence in the country could test investor confidence in its banking sector.
The signal: This deal marks a turning point for Bulgarian banks' access to international capital. Eurozone membership is already unlocking new funding channels for the country's financial institutions, allowing them to compete for capital on the same playing field as their Western European peers.
The strong demand from international institutional investors suggests the market views Bulgaria's banking sector as investable — a significant shift for a country long considered a peripheral player in European finance.
Read more: bgnes.com
