Mr. Bakalov, First Investment Bank has completed an international placement of two bond issues for a total of EUR 310 million. What is the significance of this achievement for the bank?
This is one of the most important strategic moments in the development of Fibank in recent years. The transactions include a bond issue of EUR 250 million, designed to meet the Minimum Requirements for Own Funds and Eligible Liabilities (MREL) and an additional issue of EUR 60 million, structured as a hybrid capital instrument. Issuing securities of this magnitude by a Bulgarian bank goes beyond mere financial success; it is a clear vote of confidence from international capital markets in the bank's stability, leadership, financial health, and future potential.
It is particularly important that the placement was carried out in a highly competitive international environment and attracted significant interest from institutional investors. The lead manager for both bond issues was Bank of America. This shows that Fibank is perceived not only as a leading bank on the Bulgarian market, but also as an institution that can successfully enter international markets and attract long-term capital.
What makes the bond transactions so significant: the size, the structure, or the investor interest?
All three elements are important. The total amount of EUR 310 million is quite significant for a Bulgarian bank, ranking among the largest international bond issues ever made by a domestic financial institution.
Furthermore, the structure is significant as it incorporates both an MREL-eligible component and a hybrid capital instrument. These transactions are integral to our broader capital and regulatory strategy, rather than isolated market operations.
Last but not least is the interest from investors. Strong demand from international institutional investors and a comfortable oversubscription, reflected in a 1.5 bid-to-cover ratio, clearly demonstrate market confidence.
The EUR 250 million issue is related to MREL requirements. What does this mean for the bank’s stability?
MREL is part of the European framework for stability and resilience of banks. These are requirements that ensure that a bank has sufficient own capital and eligible liabilities to meet potential challenges without creating stress for customers, depositors or the financial system.
For First Investment Bank, the issue means that it now has a larger buffer of funds, enabling optimized capital structure planning and increased medium-term predictability. It provides us with additional flexibility to develop our business, while maintaining a high degree of regulatory resilience.
What is the role of the EUR 60 million hybrid bond issue?
The hybrid capital instrument has a different function than the MREL issue and basically replaces an existing instrument that the bank issued more than 10 years ago. It is aimed at strengthening the bank's capital base and is an important element of long-term capital management.
For us, this combination is very strong because it achieves two goals: on the one hand, meeting and exceeding regulatory buffer requirements, and on the other further bolstering the capital position. Such an approach demonstrates that Fibank’s capital management is not only strategic but also perfectly aligned with best European practices.
Would it be fair to say that these transactions are a recognition not only for Fibank, but also for the Bulgarian banking sector?
Yes, definitely. Successful international transactions on such a scale send a positive signal for the entire banking sector. They show that Bulgarian banks can actively participate in international capital markets and that, following the adoption of the single currency, interest in our country and its financial sector is increasing.
Joining the eurozone has increased Bulgaria's visibility and created a better environment for access to international capital. Of course, each bank must generate trust on its own through performance, governance and consistency. But the context is definitely more favorable.
The outlook on Fibank's long-term rating was recently upgraded. How do you relate this to the bond issues?
The rating outlook upgrade is yet another independent signal that Fibank’s strategic direction receives positive evaluations. The international rating agency Fitch Ratings affirmed the bank's long-term rating and raised its outlook to positive, taking into account developments in corporate governance and risk management.
This is important because the rating and the market positioning are two different, but complementary indicators. One is an assessment by a rating agency, while the other reflects real-time investor sentiment. When both are moving in a positive direction, this shows that the bank's efforts are recognized by both analysts and capital markets.
How do Fibank's first quarter results support this picture?
In the first quarter of 2026, Fibank’s performance was sound. Our assets reached EUR 10.8 billion on a consolidated basis, an increase of EUR 948 million relative to the close of 2025. Net profit for the period was EUR 29.6 million, and profit before tax was EUR 54 million.
The growth of core banking business was particularly important. Total operating income reached EUR 94.093 million, and net interest income was EUR 70.560 million, increasing by EUR 9.001 million compared to the same period of previous year. This indicates that our results are driven by genuine business activity rather than by one-time events.
What are Fibank's main priorities for the rest of the year?
Last year, we started offering financial services in the Republic of Greece. This year, we intend to continue our international expansion by entering two more markets in the EU. At the same time, we are actively upgrading the investment module of our mobile application My Fibank and will announce its new capabilities in the autumn. Continuing our legacy of digital financial innovation, next week we will also unveil a specially tailored version of our mobile banking for children and teens.
Our core priorities remain consistent: stability, capital efficiency, robust risk management and business development. Moving forward, we are focused on driving profitability, accelerating digital transformation, expanding the credit portfolio, and maintaining our strong liquidity and capital position.