Fibank raises record EUR 310 million in international bond placement

By AI, Created 4:40 PM UTC, May 18, 2026, /AGP/ – Fibank closed the largest international capital placement by a Bulgarian bank in recent years, selling two bond issues worth EUR 310 million to institutional investors. The deal strengthens the lender’s capital base, meets regulatory funding needs and underscores rising confidence in Bulgarian banks as the country advances toward eurozone integration.

Why it matters: - Fibank’s EUR 310 million placement is the biggest international capital raise by a Bulgarian bank in recent years. - The transaction gives First Investment Bank additional capital for regulatory requirements and growth. - The deal also signals stronger international appetite for Bulgarian bank debt.

What happened: - Fibank, also known as First Investment Bank, placed two bond issues on international capital markets totaling EUR 310 million. - The transaction closed on May 14, 2026. - The package included a EUR 250 million bond issue designed to meet Minimum Requirement for Own Funds and Eligible Liabilities standards. - The package also included a EUR 60 million hybrid capital issue. - Bank of America acted as lead manager for both issues.

The details: - The EUR 250 million tranche was oversubscribed, with a bid-to-cover ratio of 1.5. - The EUR 60 million tranche is structured as a hybrid instrument for the bank’s Tier 1 capital. - Both issues are slated for trading on the Luxembourg Stock Exchange. - The placement drew strong interest from international institutional investors. - At the end of the first quarter of 2026, Fibank ranked fifth in Bulgaria’s banking system with assets of EUR 10.02 billion. - As of March 31, 2026, Fibank reported capital and liquidity ratios above regulatory minimums. - First Investment Bank is the largest bank with domestic Bulgarian capital and is majority-owned by Ivaylo Mutafchiev and Tseko Minev.

Between the lines: - The oversubscription suggests investors were comfortable with Fibank’s funding profile and balance-sheet position. - The mix of MREL debt and hybrid capital points to a deliberate effort to strengthen different layers of regulatory capital. - CEO and Chairman Nikola Bakalov said the deal reflects confidence in Fibank’s sustainable development, consistent policy and stable financial metrics. - Bakalov also framed the placement as a sign of broader confidence in Bulgaria’s banking sector following eurozone integration.

What’s next: - Fibank’s bonds are expected to be admitted to trading on the Luxembourg Stock Exchange. - The new capital should support the bank’s regulatory funding position and future market access. - The successful placement may help Bulgarian banks attract more international capital on similar terms.

The bottom line: - Fibank turned a strong investor reception into a record-setting EUR 310 million international bond deal, boosting its capital position and widening its access to global markets.