Bulgarian Posts plans 15M euro bond issue

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Bulgarian Posts intends to refinance its arrears by raising 15 million euro through a bond issue, the company told a news conference on November 12 2010.

The offering, part of the postal operator's development strategy, will have a five-year maturity. Bulgarian Posts has already called a tender to select the financial entities, which will handle its debt restructuring.

The company posted a 822 000 leva loss for the first nine months of 2010, compared with a positive result of 2.8 million leva in the corresponding period of the previous year, while its debt reached 30 million leva.

The unsatisfactory figure was attributed to the decline in revenue from postal services.

The postal operator also unveiled plans to close part of its offices located in populated areas of fewer than 800 people, currently numbering 1000, or 30 per cent of its network. Between 2011 and 2016, the company will also shut 100 branches each year in places where they earn too little money to justify keeping them open.



Source: dnevnik.bg