DGKV advised Citibank Europe plc as sole bookrunner, Citibank N.A., London Branch as trustee, and Karoll AD as security agent on matters of Bulgarian law in connection with the first-ever issuance of covered bonds by a Bulgarian issuer.

The transaction involved the issuance of € 500,000,000 floating rate covered bonds due 2032 by Eurobank Bulgaria AD in July 2025. The bonds are admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange and are rated Aa2 by Moody's. The issuance was approved by the Bulgarian National Bank and is backed by a cover pool of residential mortgage loans secured by property located in Bulgaria.

It marks the first issue of covered bonds under Bulgaria’s new Covered Bonds Act, which implements Directive (EU) 2019/2162, and the bonds bear both Residential Covered Bond and European Covered Bond (Premium) labels. Subject to applicable eligibility criteria, the bonds could be recognised as eligible collateral for the Eurosystem monetary policy and intra-day credit operations.

DGKV’s team was led by partners Gergana Monovska and Georgi Tzvetkov, supported by Tsvetelina Bayraktarova (Senior Associate), Deyan Bogdanov (Senior Associate) and Alek Kosev (Associate).