Following a highly successful year for MREL-compliant bond issuances in 2025, the Bulgarian banking sector continues to demonstrate strong momentum in the capital markets.
During 2025, TBI Bank completed two MREL bond IPOs—one in the first half of the year totaling €34 million, and a second issuance of €60 million in the second half. In addition, First Investment Bank issued a €50 million MREL bond in August 2025, further strengthening the domestic market for bank capital instruments.
As previously reported, TBI Bank is planning an additional MREL bond issuance scheduled for March 2026. Importantly, 2026 will also see the entry of a new issuer into the MREL bond market: Central Cooperative Bank AD (BUL:CCB).
Although market rumors regarding a potential CCB MREL issuance began circulating in late November 2025, the plan was formally confirmed following a resolution adopted at an Extraordinary General Meeting of Shareholders held on 18 December 2025.
Key Resolutions of the Extraordinary General Meeting
The General Meeting resolved to approve the issuance of a series of dematerialised, unsecured, interest-bearing, registered, non-convertible, and freely transferable bonds, structured to meet the requirements for eligible liabilities instruments (MREL) under Chapter Thirteen, Section II of the Recovery and Resolution of Credit Institutions and Investment Firms Act.
Key parameters of the planned bond issue include:
- Total nominal value: Up to €50,000,000
- Minimum placement threshold: €15,000,000
- Par value per bond: €100,000
- Issue price: At par (€100,000)
- Maximum number of bonds: Up to 500
- Maturity: 4 years
- Interest rate: To be determined by a subsequent decision of the Management Board
- Interest payment frequency: Annual
- Offering structure: Public offering via an IPO
- Admission to trading: Bonds Segment of the BSE Main Market, subject to successful placement
- Additional tranches: One or more subsequent issuances may be executed within the validity period of the approved prospectus if the full nominal amount is not raised at the initial offering
The CCB bond IPO can further enhance the Bulgaria AIF Fund portfolio for Bulgaria Golden Visa applicants by expanding diversification across a broader range of high-quality bond issuers.
