Eurohold Bulgaria AD

Share Issue/Capital Change • Mar 19, 2019

NEWS RELEASE

Eurohold plans to increase its share capital by some BGN 80 million

The group will issue around 80 mln new preferred shares at a issue price of BGN 1.95 each

Sofia, 19 th March 2019 - Eurohold Bulgaria AD, a Bulgaria-based leading independent business group operating in the CEE/SEE/CIS region, plans to raise its share capital by c. BGN 80 million to nearly BGN 277 million through issuance of preferred shares.

The raised funds will be used to further reduce the debt of the company. The proceeds from the capital increased will also be used to strengthen the capital position of Euroins Insurance Group AD, Eurohold's insurance holding, and support the expansion of the group.

The holding company will seek the approval of its shareholders for the capital hike at an extraordinary general meeting to be held on April 22. An invitation for that purpose has already been published. Eurohold will propose its shareholders to issue approx. 80 million new preferred shares with a nominal value of BGN 1 each and an issue price of BGN 1.95 per preferred share.

The holders of the newly issued preferred shares will have no voting rights and will be entitled to receiving a guaranteed annual fixed dividend at the amount of: 6% over the nominal value per preferred share for the first five years; 3% over the nominal value per preferred share from the 6th up to the 10th year inclusively after the registration of the capital increase with the commerce register; and 1% over the nominal value per preferred share after the expiration of ten years as of the registration of the capital increase with the commerce register.

Eurohold will consider the capital hike successful if at least 25.3% (20 million) of the new preferred shares are subscribed and fully paid in. In case of a successful capital increase the holding company will raise between 39 BGN million and 156 BGN million. All the details will be discovered in a prospectus to be published. Euro-Finance AD, one of the largest investment intermediaries in Bulgaria, will be the manager of the emission.

Eurohold's consolidated operating revenue amounted to BGN 1.3 billion in 2018, up by +2.4% on the year and a record value in the history of the company, showed the recently published annual unaudited consolidated financial statement of the group. At the end-2018, the group's consolidated assets totalled BGN 1.4 billion, which is +5% higher compared to the end-2017 figure.

Eurohold Bulgaria is a leading independent business group in the CEE/SEE region, operating in insurance, leasing, car sales, asset management and investment services and listed on the BSE and the WSE. It owns Euroins Insurance Group (EIG), one of the largest independent insurance groups in the CEE/SEE region, operating in 9 markets, including own subsidiaries in Bulgaria, Romania, North Macedonia, Ukraine and Georgia. EIG also operates in Greece and Russia, and has niche insurance operations in Spain and Italy. Currently the insurance group has over 2.5 million clients and over 3000 employees. www.eurohold.bg www.eig.bg