31.01.2023 The Bulgarian Development Bank and the Bulgarian Stock Exchange are establishing a pilot investment fund to support small and medium-sized companies
The project is in compliance with the policies of the Ministry of Innovation and Growth for publicity and transparency in the assessment of investment projects
The Bulgarian Development Bank (BDB) and the Bulgarian Stock Exchange (BSE) are establishing a pilot investment fund to support small and medium-sized enterprises in the country. This became clear at the signing of a tripartite agreement between the Minister of Innovation and Growth, Aleksandar Pulev, the Executive Directors of BDB, Iliya Karanikolov and Ivan Cerovski, and the Executive Director of BSE, Assoc. Prof. Manyu Moravenov, PhD.
Among the goals of the establishment of the fund is the testing of the market and the investment interest of Bulgarian and foreign institutional investors. The Bulgarian Development Bank shall invest a basic minimum investment of BGN 2 million upon successful implementation of the first stage of the fund's development, namely an increase of its capital to BGN 10 million. BDB's investment may grow further over time with subsequent increases in capital and depending on the interest of market participants, including key institutional investors and international financial institutions with which talks are pending.
It is expected that the fund will actually commence its activities with a capital of BGN 10 million, which will grow in the future and attract strong interest from investors. They will have a market instrument allowing them to invest in innovative Bulgarian small and medium-sized enterprises that have a high potential for growth.
The fund is entirely aimed at supporting small and medium-sized enterprises that carry out an initial public offering of securities on the BEAM market or on the regulated market organized by BSE, or issue bonds and other instruments for which a commitment has been made to be listed on one of the markets organized by Bulgarian Stock Exchange.
The instrument aims to achieve maximum publicity and transparency in the assessment of investment projects, as well as in the development of the Bulgarian capital market as an important instrument for financing businesses in the country. The bank is expected to structure other similar instruments together with the Bulgarian Stock Exchange.
BSE and BDB will inform the public about the actions on the structuring of the fund and its expansion in support of small and medium-sized businesses in the country.
