Eurohold Bulgaria AD

Capital/Financing Update • Dec 1, 2017

1 December 2017

News Release

Eurohold issued euro notes worth EUR 70 million

This is the company's second notes issue within its EMTN program and it is with improved conditions compared to the first issue

Eurohold Bulgaria AD, one of the largest Bulgarian public-listed companies, issued successfully on November 30th, 2017, EUR 70 million medium-term notes issued under the company's EUR 200 million Euro Medium Term Note (EMTN) programme, listed on the Irish Stock Exchange. This is company's second notes issue under the EMTN programme approved by the Irish central bank in November 2016 and the conditions are:

• • Size – EUR 70 000 000
• • Maturity – 5 years
• • Fixed annual interest coupon rate – 6.5%
• • Minimum size of trading – 200 000 euro

The corporate notes have been subscribed by over 20 institutional investors from Great Britain, Switzerland, Russia, Germany and Bulgaria. London-based Nomura International and Renaissance Capital are joint lead managers and joint bookrunners, Bulgaria-based Euro-Finance and BAC as co-managers, and Varengold Bank is a financial advisor.

The funds raised through the new notes issue will be used for purchasing the notes from the previous issue worth EUR 47 million and carrying an annual interest coupon of 8.0% as well as for developing and expanding Eurohold's business further.

Kiril Boshov, Chairman of Eurohold Bulgaria's Management Board, said:

"The new notes issue reflects improved conditions for us as an issuer in comparison to the previous one which is an assessment for an increased trust placed by the investors. The new corporate notes will not impact the company's indebtedness because of the upcoming capital increase via the issuance of 40 336 250 shares with a nominal value of BGN 1 each and issue price of BGN 1.3 per share, that will be conducted till the end of the year."

Eurohold is among the few Eastern European companies that launched EMTN Programme. The EMTN programmes are a popular funding source for the corporate sector in the developed countries and allows bond issuers to enter foreign markets more easily to get capital. The EMTN programme provides the issuer with significant

flexibility with reference to the terms of the bonds to be issued within the framework including the size of the bond issues, the interest rates, the maturity and etc.

Eurohold Bulgaria AD

Eurohold Bulgaria is a leading Bulgarian company, listed on the BSE-Sofia and the WSE. The holding Eurohold Bulgaria is a leading Bulgarian company, listed on the BSE-Sofia and the WSE. The holding company operates across CEE and SEE, focused on non-banking financial services and asset management. Eurohold Bulgaria is a majority shareholder of Euroins Insurance Group (EIG), one of the largest independent insurance groups operating in the CEE and SEE insurance markets. EIG operates in 8 European countries and owns insurance subsidiaries in four of them – Bulgaria, Romania, FYROM and Ukraine. The insurance group has been operating in Greece since 2014. It has over 2.5 million clients, 1600 employees and annual revenues of EUR 400 million. In 2017 the international credit rating agency Fitch assigned Euroins Romania, the largest company within the insurance business of Eurohold, an insurer financial strength (IFS) rating of 'BB-' with stable outlook. The ratings agency has simultaneously assigned Eurohold Bulgaria AD a longterm issuer default rating (IDR) of 'B', with stable outlook and Eurohold's 200 million euro medium term note (EMTN) programme ratings of 'B'/'RR4'. www.eurohold.bg www.eig.bg