Fibank In a ground breaking transaction for Bulgarian banking, and amongst the first transactions of its type in Eastern Europe, First Investment Bank Limited ("FIBank") raised Euros 27 million of Upper Tier II hybrid capital through the issuance of notes on the international markets. The lead manager and sole book runner was the London Branch of Dresdner Kleinwort Wasserstein ("DRKW") and the issue was significantly oversubscribed.
The notes were sold in August 2005 and FIBank received permission from the Bulgarian National Bank to include the Euros 27 million in its regulatory capital base with effect from 10th September 2005. Commenting on the hybrid capital issue, Jonathan Harfield, Chief Executive Director of FIBank said, "the hybrid capital, combined with the commitment of the Bank’s shareholders to increase ordinary share capital during the final quarter of 2005, significantly strengthens FIBank’s capital base enabling the Bank to enhance its activities both in Bulgaria and in the region. FIBank is well-placed competitively and to increase its market share. To be able to attract hybrid capital on the worldwide markets also demonstrates that FIBank is held in high esteem by international institutional investors".
DRKW were the lead managers and sole book runners for FIBank’s 40 million Eurobond issue in September 2003 and (together with ABN Amro) for FIBank’s 200 million Eurobond issue in February 2005. In relation to the recent Euros 27 million hybrid capital note issue, Raymond Harte, Managing Directior of DRKW reflected, "the success of this inaugural hybrid transaction for First Investment Bank demonstrates the maturity and recognition that the Bank has achieved over past years on the international capital markets".