FIB TO ISSUE MORTGAGE BONDS FOR BGL3MN
Till the end of June 2001 First Investment Bank will issue mortgage bonds at the Stock Exchange. The decision for the issue was voted by its shareholders on May 15, 2001.
The securities issue will not exceed BGL3MN, and the term for their repayment will be two years, said Jordan Skorchev, FIB Executive Director, to the Banker weekly. According to him FIB bonds will be secured by mortgages of real estates collateralised by bank customers against credits. The term for the credits repayment is not longer than two years either.
Should the first securities issue is successfully sold, till the end of this year the bank will issue new mortgage bonds. Its total nominal value will be BGL2MN. The idea FIB managers have is to test the market for its attitude towards the new type of securities, before embarking on real estate crediting.
Two months ago Matthew Mateev, FIB Executive Director, announced that the bank intends to offer long term loans for real estates purchase and repairs. He said that if the customers are interested in this product and the number of credits is satisfactory, the bank may even establish a daughter structure, handling this special business only. One of the possibilities for providing financing for real estate loans is to issue mortgage bonds against them.
FIB General Assembly voted the 2000 balance sheet and PL account. The bank's net profit exceeds BGL8.7MN, and the shareholders decided to refer it to the reserves fund. FIB is among the most vigorously expanding credit institutions at the local market. In 2000 its assets increased by more than 57%, reaching BGL320.1MN, while the total amount of credits launched doubled, exceeding BGL151MN at the end of 2000.