BACB issues €5m mortgage bonds (NEUTRAL)

Bulgarian-American Credit Bank has issued under private placement €5m mortgage bonds, the bank announced. The bond has a 5 years’ maturity and pays interest of 6mo Euribor plus an add-on of 4.2%, semi-annually. The bank is turning to wholesale funding again after it had repaid on maturity its 7th mortgage bond issue of €12m in May last year and deposits had remained the only funding source. BACB assets totaled BGN 740m as of June’14, while H1’14 net loss was trimmed to BGN 6.9m from BGN 11.9m for the same period last year. The loan portfolio grew by 6.5% YTD to BGN 462m as of June.