TBI Bank Receives FSC Approval for EUR 100 Million MREL Bond Public Offering

Just a month after our earlier coverage of TBI Bank’s plans to issue an MREL bond, Bulgaria’s Financial Supervision Commission (FSC) has officially approved the prospectus for the initial public offering (IPO) and admission to trading on a regulated market of the bond issue by TBI Bank EAD, Sofia.

According to the FSC decision, the issue amounts to up to EUR 100,000,000, divided into up to 1,000 ordinary, interest-bearing, dematerialized, non-convertible, senior, registered, non-preferred, unsecured, freely transferable bonds.

The bonds are structured to comply with the requirements for MREL-eligible liabilities under Chapter XIII, Section II of the Bulgarian Recovery and Resolution of Credit Institutions and Investment Firms Act (ЗВПКИИП).

Each bond carries a nominal and issue value of EUR 100,000, with ISIN code BG2100031256, and bears a fixed interest rate for the entire term, payable annually. The coupon rate will be determined based on prevailing market conditions within the range specified in the approved offering documentation.

The bonds have a maturity of 3 years and allow for additional issuances within 12 months of the FSC’s approval, provided the initial offering amount is below the maximum authorized size.

TBI Bank retains the right to exercise several call options, including:

• A standard issuer call option, exercisable any time after the second anniversary of issuance;
• A tax call option; and
• A disqualification call option, should the bonds cease to qualify as eligible liabilities under MREL regulations.

The upcoming public offering marks another important step in TBI Bank’s ongoing strategy to strengthen its capital structure and meet European regulatory requirements for loss-absorbing capacity.

Credit Ratings:

Moody’s: Baa3 Long-term CRR; Ba2 Long-term Deposit rating, outlook positive

BCRA: BBB- Long-term financial strength rating, outlook stable

Timing:

Planned for 3–7 November 2025

Expected Coupon

Expected 6.5% – 7.5%

The upcoming TBI bond is highly anticipated among professional investors looking to diversify and strengthen their fixed-income portfolios. Bulgaria Fund Management intends to include TBI’s MREL bonds in the portfolio of the Bulgaria AIF Fund.

This article is for information only and does not constitute investment advice or an offer to buy or sell securities.