Fibank First Investment Bank, one of Bulgaria’s leading financial institutions, has acquired two new shareholders who will help boost the bank’s business across the country. The Bulgarian National Bank has approved the transaction.
Hillside Apex Fund Limited and Growth Management Limited, two emerging market funds, each acquired a 10 per cent stake in the bank from the European Bank for Reconstruction and Development. The EBRD, which has made a full exit from FIBank, acquired its 20 per cent in the bank in 1997 to provide FIBank with institutional strength and help promote its growth.
"For nearly a decade, the EBRD supported FIBank's transition process and helped it gain access to the international markets", said Jonathan Harfield, CEO of First Investment Bank. "After achieving its objectives, the Bank's exit is a natural course, and a logical step in terms of FIBank's development."
The acquisition of the shares by Hillside Apex Fund Limited and Growth Management Limited builds on their existing relationship with FIBank. In 2003 both funds made subordinated loans to FIBank in support of its capital base.
"This share purchase shows FIBank can now attract private sector shareholders from the international markets, something which was not possible in the recent past", said Mr Harfield. "The new shareholders, with their expertise in fund management, will offer FIBank new business and product development opportunities, which we hope will strengthen the bank’s market position."
First Investment Bank was founded in 1993 in Sofia, Bulgaria’s capital city, and owns a full banking license for domestic and international operations. The bank has 88 branches across the country, and operates internationally in Albania and Cyprus.