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					 EUR 30 000 000 FOURTH MORTGAGE BOND LOAN TO BE ISSUED BY
                            …………………


                                      ....................was incorporated in 1994
SECURITIES    ORDINARY, REGISTERED,
                                      and has general banking licence issued
TYPE:         BOOK-ENTRY, INTEREST
                                      by      the      Bulgarian   National   Bank
              BEARING, NON-           according to which it is allowed to
              CONVERTIBLE MORTGAGE    conduct         all   banking    transactions
              BONDS                   permitted by the Bulgarian legislation.

ISSUE                                 In terms of assets, ....................is No.
              EUR                     8 in the Bulgarian banking sector with
CURRENCY:
                                      total assets reaching nearly BGN 1,086
ISSUE SIZE:   MIN. EUR 10 000 000     ths. at the end of Y2007

              MAX. EUR 30 000 000     Shareholders:
                                       Festa Holding AD – 70.1%
NUMBER OF     MIN. 10 000              Petia Slavova – 21.11%
BONDS:                                 Black Sea Gold AD – 5.46%
              MAX. 30 000              Others – 3.33%

NOMINAL                               In      2007,       one    of   the   leading
              EUR 1 000
VALUE:                                internationally        acknowledged     credit
                                      ratings agencies Moody’s Investors
ISSUE
              EUR 1 000               Service                has          upgraded
VALUE:
                                      ....................PLC’s credit rating from
MATURITY:     60 MONTHS               B3/NP to B2/NP. The rating refers to
                                      deposits in both local and foreign
                                      currency (Global Local Currency and
COUPON
              6 MONTHS                Foreign Currency deposit ratings). At the
PAYMENT:
                                      same time, Moody’s has affirmed the E+
                                      Bank Financial Strength Rating initially
COUPON RATE: FIXED AT 8.00% P.A.      assigned to the Bank in 2006. All ratings
                                      carry a stable outlook.
PRINCIPAL
              BULLET AT MATURITY
REDEMPTION:                           The bond loan will be issued according
                                      to the Bulgarian Law on Mortgage-
COLLATERAL:   RECEIVABLES ON          Backed Bonds and will be secured with
              MORTGAGE LOANS,         receivables on mortgage loans covering
              COVERING MIN. 120%      min. 120% of the outstanding bond
              THE OUTSTANDING BOND    principal
              PRINCIPAL
                                      Overall, ....................has previously
                                      issued 6 bond loans, of which 3
SUBSCRIPTION
             ……..                     mortgage and 3 corporate issues.
START DATE:
                                      Currently, the Bank has outstanding EUR
                                      2,000,000 mortgage bond, maturing in
SUBSCRIPTION                          Dec    2008     and      EUR    15,000,000
             ……..
END DATE:                             commercial paper, maturing in June
                                      2008. The Bank has not broken any
                                      bond covenants and has duly serviced
                                      any of its obligations.

                                                                                   1
                                 BOND COLLATERAL
LEGISLATION FRAMEWORK
According to the Bulgarian Law on Mortgage-Backed Bonds, bonds shall be securities
issued by banks on the basis of their loan portfolio and secured by one or more first
ranking mortgages on real estate in favor of banks (mortgage loans).
Outstanding mortgage-backed bonds shall be covered by mortgage loans of the
issuing bank (Principal Cover). To substitute loans from the principal cover that have
been repaid in full or in part, the issuing bank may include the following of its assets
in the cover of the mortgage-backed bonds (Substitution Cover): cash or claims on
the government of Republic of Bulgaria or the Bulgarian National Bank and claims
fully secured by them, claims secured by gold, claims fully backed by bank deposits.
Substitution cover may not exceed 30% of the bond principal outstanding.
Total, principal cover and substitution cover may not be less than the bond principal
outstanding.


CHARACTERISTICS OF THE MORTGAGE LOANS PORTFOLIO OF ……… TO SECURE THE CURRENT
BOND ISSUE

As of 18.03.2008 the mortgage loans portfolio consists of 933 loans with total
nominal value of BGN 80,954,223 and total principal outstanding BGN 73,670,848.
Total Principal Cover value of the mortgage loans amounts to BGN 71,324,846.


Purpose of the bond loans
   Mortgage loans granted to individuals for purchase of real estate and finishing
    works
   Mortgage loans granted to local and foreign private individuals and Bulgarian legal
    entities for purchase of real estate properties in Bulgaria – both off-plan (at least
    rough construction) and fully completed properties
   Investment loans granted to corporate clients covered by first ranking mortgage
    in favor of the Bank


Collateral
The mortgage loans included in the portfolio are secured by first ranking mortgage on
residential buildings/apartments


Principal outstanding
   Between BGN 3,000 and BGN 2,467,400


Interest rates
   Between 6.60% - 12.50% (for loans in BGN);
   Between 6.60% - 12.50% (for loans in EUR);
   Portfolio overall: between 6.60% - 12.50%




                                                                                        2
Maturity
   Between 35 months and 367.50 months
   Portfolio average (in case of bond nominal value of EUR 30 mln.) – 193.32
    months


Maturity breakdown of the Portfolio:
                                                           Maturity
                         Total       Up to       24 - 36         36 - 48     Above
                                   24 months     months          months    48 months

Number of loans           933          -            3              11         919

Principal Outstanding
                         73 761        -          3 198            965       69 598
(BGN)
Principal C over value
                         71 325        -          3 198            797       67 330
(BGN)



Type of loan repayment
   Annuity payments
   Individually negotiated repayment plan


Collateral set-up

The minimal nominal value of the mortgage bond of EUR 10,000,000 will be covered
with loans secured with first ranking mortgage in the cities of Sofia and Plovdiv.



In case the nominal value of the bond issue exceeds EUR 10,000,000 loans from the
portfolio secured with first ranking mortgage in the largest Bulgarian cities will be
treated with priority when setting-up the collateral.


As of 18.03.2008 the mortgage loans included in the portfolio are secured with real
estates situated primarily in the following cities:
   Sofia – 30.38%
   Pleven – 12.38%
   Bourgas – 9.65%


These three locations cover mortgage loans with total nominal vale of BGN
42,462,614 which is 50.24% of the total portfolio nominal value. Total Principal Cover
value of these loans amounts to BGN 35,834,743.




                                                                                       3
                           OVERVIEW OF BUSINESS ACTIVITY


P&L
Reported interest income of .................... AD as of 31.12.2007 amounted to BGN
50,385 ths. compared to BGN 21,985 ths. as of 31.12.2006
Main part of total income of banking operations are due to interest income on loans
and advances to customers (individuals and legal entities) – 72.26% of total revenue.
In Y2007 interest income on loans and advanced to customers reached BGN 36,824
ths. compared to BGN 15,540 ths. as at 31.12.2006. Realized Income from securities
(trading, held-to-maturity and available for sale) for the same period amounts to BGN
4,841 ths. compared to BGN 1,960 ths. year earlier.
For the financial Y2007, .................... AD reported Profit before tax of BGN 11,407
ths. (BGN 2,007 ths in Y2006) and Profit after tax reached BGN 1,731 ths – fivefold
increase for the last fiscal year.


Assets
Total assets of .................... AD doubled for the last financial year and reached BGN
1,085,721 ths. as of 31.12.2007, compared to BGN 530,693 ths as of 31.12.2006. In
a result of increased business activity of the Bank the most liquid assets account -
Cash and balances with Central Bank reached BGN 165,596 ths. (BGN 61 488 ths., at
the end of Y2006)




                 Assets structure for the period 2005 - 2007

         600 000 BGL

         500 000 BGL

         400 000 BGL

         300 000 BGL

         200 000 BGL

         100 000 BGL

              0 BGL
                        Cash and                    Trading                   Available-
                        balances                   securities                  for-sale;
                       with Central                                            Held-to-
                           bank                                                maturity
                                                                             investments

                                      31.12.2005   31.12.2006   31.12.2007




                                                                                           4
Bank’s credit portfolio of loans and advances to customers (individuals and legal
entities) as at 31.12.2007 amounted to BGN 484 529 ths. before impairment, or
44.63% of total assets. Credit portfolio as at 31.12.2006 was BGN 190 807 ths. - 2.5
times YoY growth.




                         Loans and Advances to Customers
                            Analysis by sector of economy

                                   Other industries;
                                       32.43%
                                                                          Manufacturing;
                                                                             9.49%




                                                                           Construction;
                                                                              17.40%
             Trade and services;                   Transport ans    Agriculture; 3.26%
                  36.42%                          communications;
                                                      1.01%




Liabilities & Shareholders’ equity
As of 31.12.2007 ....................’s total liabilities reached BGN 996 904 ths. compared
to BGN 494 962 ths. as at 31.12.2006 (incl. subordinated liabilities). Meantime,
shareholders’ equity has increased almost 148% due to increase in Reserves (440%)
as well as realized capital increases in H2/2007. As of 31.12.2007, .................... AD
reported share capital of BGN 70 000 ths. and Reserves of BGN 18 817 ths.


At the end of Feb 2008 the Financial Supervisory Commission has accepted the
Bank’s Prospect for Initial Public Offering (IPO) of shares, which will be issued by
.................... AD, resulting from increase in the share capital of the Bank. The
proceeds from the IPO will be used for developing of the Bank’s branch network,
improving the information system and credit support of the retail and SME business.




                                                                                           5
                                          COMPANY FINANCIALS

Income statement

                             BGN '000                                2005       2006         2007

  Interest income                                                     14 072     21 985      50 385

  Interest expense                                                     7 970     13 939      28 021

  Net interest income                                                 6 102      8 046      22 364

      Fee and commission income                                        4 572      7 284      11 044

      Fee and commission expense                                        935       1 424       1 754

  Net fee and commission income                                       3 637      5 860       9 290

  Net trading income                                                   1 799      1 675       3 491

  Other operating income, net                                           697        853          718

  Total income from banking operation                                12 235     16 434      35 863

  General administrative expenses                                     10 439     14 016      23 099

      Impairment                                                        747        411        1 357

  Profit before tax                                                   1 049      2 007      11 407

  Income tax expense                                                    126        276          831

  Profit after tax                                                      923      1 731      10 576


Balance sheet
                        ASSETS (BGN '000)                            2005       2006        2007

  C ash and balances with C entral bank                              30 277     61 488      165 596

  Due from banks                                                     58 987    120 346      149 434

  Trading securities                                                 10 737     39 801       86 080

  Loans and advances to customers                                   166 229    187 084      479 461

  Available-for-sale; Held-to-maturity investments                   48 798     99 603      175 359

  Property, plant and equipment and intangible assets                 4 263     17 294       20 440

  Other assets                                                          994      5 077        9 351

  Total assets                                                      320 285    530 693    1 085 721

                      LIABILITIES (BGN '000)

  Deposits from banks                                                38 217     68 845       87 835

      Payables under repurchase agreement                                 -     12 800             -

  Deposits from customers                                           245 148    373 497      862 167

  Debts securities issued                                            13 761     42 487       38 391

  Subordinated liabilities                                               -       4 115             -

  Other liabilities                                                   1 482      6 018        8 511

  Total liabilities                                                 298 608    494 962     996 904

  Issued share capital                                               20 000     32 323       70 000

  Reserves                                                            1 677      3 408       18 817

  Total shareholders' equity                                         21 677     35 731      88 817

  Total liabilities and shareholders' equity                        320 285    530 693    1 085 721
Presented financials are based on audited annual reports of ………….



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