As we publish our October portfolio update, we can already share encouraging developments from November.
Following a period of approximately six months during which the Fund maintained around 40% of its capital in cash, weighing on overall returns, Bulgaria AIF has adopted a more active investment approach to improve capital deployment and income generation.
November so far
During November, the Fund has already:
- added bonds issued by TBI Bank and Central Cooperative Bank (CCB) to its portfolio;
- welcomed two new investors, with a further two subscriptions anticipated before month-end.
Additional bond acquisitions are also planned for November, subject to market conditions.
October at a glance
October itself was a productive month, with further diversification into Bulgaria’s industrial and agricultural sectors.
| Issuer | Maturity | Annual coupon | Invested |
|---|---|---|---|
| TIZC · Trakia Economic Zone | May 2027 | 6M EURIBOR + 3%, min 4% | €220,220 |
| TIZA · Trakia Economic Zone | Nov 2031 | 7% fixed | €154,563.60 |
| TIZD · Trakia Economic Zone | May 2034 | 6M EURIBOR + 2%, min 5% | €100,100 |
| Elana AgroCredit | Oct 2034 | 6M EURIBOR + 3.25%, min 3.25% | €150,000 |
Trakia Economic Zone (TEZ)
TEZ is one of Bulgaria’s largest industrial development projects, comprising five industrial parks and areas, including Rakovski, Kuklen, Plovdiv, Maritsa and Kaloyanovo. These provide infrastructure for manufacturing, logistics and industrial businesses, attracting domestic and international investment.
The Fund invested in three TEZ-related bonds with different maturities and coupon structures.
- Rate at subscription
- 5.594%
- Coupon
- Floating, 6-month EURIBOR + 3%, minimum 4%, paid semiannually
- Purchased
- 220 bonds at €1,001 = €220,220
- Coupon
- 7% fixed
- Payment
- Paid semiannually, regardless of EURIBOR movements
- Purchased
- 302 bonds at €511.80 = €154,563.60
- Rate at subscription
- 5%
- Coupon
- Floating, 6-month EURIBOR + 2%, minimum 5%, paid semiannually
- Purchased
- 100 bonds at €1,001 = €100,100
TIZC. With approximately six months remaining until maturity, this investment offers attractive short-term income compared with conventional bank deposits, while reducing exposure to longer-term market uncertainty.
TIZA. The fixed coupon provides predictable interest income regardless of EURIBOR movements.
TIZD. Although Bulgaria AIF generally limits its exposure to longer-dated bonds, this investment reflects the Fund’s positive outlook for Bulgaria’s industrial development.
Industrial parks operate similarly to retail parks, but instead of accommodating shops and supermarkets, they provide facilities for factories, manufacturers and logistics businesses. Their development may also benefit from public infrastructure investment and government support programmes.
The Bulgarian government has identified industrial zones as an important driver of economic growth, reinforcing the Fund’s long-term investment rationale.
Elana AgroCredit — October 2034
Bulgaria AIF participated in Elana AgroCredit’s latest bond offering, acquiring 150 bonds with a nominal value of €1,000 each, representing €150,000.
The bonds carry a floating annual coupon of 6-month EURIBOR + 3.25%, with a minimum of 3.25%, payable semiannually. The applicable rate at subscription exceeded 6%.
Despite their eight-year maturity, the bonds feature an amortising structure, with one-eighth of the principal scheduled for repayment annually. Assuming the repayment schedule is maintained, approximately 50% of the original principal is expected to be recovered by the end of 2030.
This structure progressively reduces outstanding capital exposure and creates opportunities to reinvest returned principal before final maturity.
Portfolio strategy and outlook
October’s investments strengthened Bulgaria AIF’s diversification across issuers, sectors, maturities and interest-rate structures.
The Fund’s priority for the remainder of 2026 is to:
With additional bond investments underway and a growing investor base, Bulgaria AIF enters the final months of 2026 with a more actively invested portfolio and a clear focus on improving capital efficiency and long-term returns.
