Bulgarian insurtech platform Boleron AD is preparing a convertible bond issue from which it aims to raise just under €5 million. The plan is detailed in a notice convening an extraordinary general meeting of shareholders, published via the Bulgarian Stock Exchange (BSE).
Funds to Repay Loan
According to the meeting materials, the proceeds from the upcoming issue will be used primarily for the full repayment of an existing loan granted to the company by ABFA Investments AD.
Boleron first announced its intention to issue bonds in July during an investor webinar, where CEO Alexander Tsvetkov noted that the company had reached a preliminary agreement with an investment fund to subscribe to part of the issue. The financing is intended to support the platform’s growth plans.
8% Annual Coupon and Option for Conversion
The company plans to offer 4,950 convertible bonds, each with a nominal value of €1,000 and a fixed annual interest rate of 8%, bringing the total possible issue size to €4.95 million.
The bonds will have a two-year maturity, with a single repayment at maturity. On the maturity date, bondholders may choose between:
- Full cash redemption, or
- Conversion of each bond into 495 ordinary shares as part of a capital increase to be carried out on the same date.
Why This Opportunity May Be Attractive
For the Bulgaria AIF Fund, the upcoming Boleron convertible bond issue brings several clear advantages.
First, it adds valuable sector diversification. The fund’s portfolio is currently focused on energy and banking, and exposure to the InsurTech sector introduces a new growth area with different risk characteristics.
Second, Boleron has the potential to evolve beyond a digital platform. With the right regulatory and legal guidance, the company could work toward obtaining an insurance licence, which would strengthen its business model and long-term prospects.
Third, the bond terms are appealing: an 8% annual coupon provides strong fixed-income return, while the option to convert into shares offers upside if the company’s expansion plan succeeds.
Investing in such opportunities shows that the Bulgaria Golden Visa is not merely a path to permanent residency with uncertain returns. Instead, it highlights Bulgaria as a strong and credible investment destination.
