Information on acquisition of assets by First Investment Bank AD from Eltrade Company Ltd. and Ferroalloys Plant Ltd.

Following an agreement with the companies First Investment Bank acquired the assets of the former Kremikovtzi plant. This will speed up the negotiations for the sale of assets to a strategic investor as the Bank has demonstrated good experience in structuring and implementing such types of transactions, and the fact that the negotiations will be conducted with one owner. In case of interest by foreign investors and the presence of many owners and a creditor, the negotiations would be hampered.

In 2011, First Investment Bank AD provided bridge financing for purchasing of a separate part of the assets of Kremikovtzi. Due to the global economic and financial crisis, the industrial production shrunk several times and the prices of steel products in world markets fell to very low levels. This caused investors to change their strategy, which postponed their investment intentions for the purchase of assets.

It should be noted that the companies until the moment of acquisition have been repaying regularly their obligations from their activities - selling of non-productive assets, transport and railway services, production of scrap and aggregates, electricity transmission.

Over the years, investments were made for the rehabilitation of capacities for the production of steel and electricity. The operation of blast furnaces and coke-chemical production was suspended and their capacity were dismantled and sold. They were the main pollutant of the air over the city of Sofia and the region. Part of the territory of the plant is reclaimed and ameliorated.

Until completing the transaction with an end-investor AMC Imoti Ltd., which is a subsidiary of First Investment Bank AD will take care for the assets.