Bulgaria’s ELG, which unites companies managing car lease, sale and rental digital platforms, successfully placed a five-year corporate bond issue on the BEAM growth market of the Bulgarian Stock Exchange (BSE) and raised EUR 5 million.    

The bond issue was placed on 24 July through an Initial Public Offering (IPO) with a precondition for success – to attract at least EUR 4 million of investment. The issue was oversubscribed due to greater investor interest and the value it generated makes it the largest one ever on the BEAM. It is the second successful bond IPO on this market as well. Euro-Finance, a leading investment intermediary in Bulgaria, acted as a manager on the offering.           

ELG issued totally 5-year 5000 ordinary, secured, freely transferable bonds at EUR 1000 each, equal to their par value. The bonds have a floating coupon based on 3-month EURIBOR plus 6.5% but not lower than 7.15% and not higher than 10% annually. Coupon payments are due quarterly. The principal will be repaid quarterly as well, having a one-year grace period.         

The bonds were subscribed predominantly by institutional investors – banks, mutual and investment funds. There were individual investors as well.    

ELG will invest the raised funds to scale up its own brands managing the online platforms: Uplease, which provides leasе financing in Bulgaria for new and used cars up to 10 years old; AMIGO Leasing – specialized in used car leasing in Bulgaria; Eurolease Auto North Macedonia – financial and operating leasing in North Macedonia. The company’s portfolio also includes: CAZAM – the first online store for used cars in Bulgaria; SIMPL – a car rental platform operating under “car-as-a-service” model; and Autoplaza – a dealer which trades used cars with proven history.      

ELG Capital AD, owned by Asen Asenov and Ivaylo Petkov – managers with over 20 years of experience in leading lease financing companies and car dealers, is a majority owner of ELG (67% of the share capital). “We are grateful to the investors for this great trust. The bond issue was actually oversubscribed and the interest surpassed our expectations. We believe that the confidence they placed in us would be justified. We expect our business to grow dynamically in the coming years. We will further develop its full potential with the raised funds,” Asen Asenov commented. “We are focused on the development of innovative and digital business models which positively changes a traditional market such as the automotive one in terms of client satisfaction, convenience and digitalization. The brands that ELG manages provide our customers and car dealers with a modern leasing service through fast and state-of-the-art technologies. In addition to this they accumulate high added value for all stakeholders, including our investors and partners,” added Asenov.            

As of end-2023, ELG manages assets of BGN 86 million and its leasing portfolio stood at BGN 51.7 million. Last year, the company booked a net profit of approx. BGN 7 million, including BGN 5.8 million from the sale of its unit. In 2024, ELG expects a rise of over 25% in its leasing portfolios.     

About ELG

ELG is a group of companies providing finance and operating leasing for new and used cars, medium and long-term car rental and car sales in Bulgaria and Northern Macedonia. The group brings the spirit of innovation to the automotive sector, reconciling different financing, usage and servicing options. The company structure includes the following brands: Uplease, which provides lease financing for new and used cars up to 10 years old in Bulgaria; AMIGO Leasing – leasing for used car in Bulgaria; Eurolease Auto North Macedonia – financial and operating leasing in North Macedonia; CAZAM – the first online store for used cars in Bulgaria; SIMPL – a car rental platform operating under “car-as-a-service” model, както и Autoplaza – a dealer which trades used cars with proven history. More information on www.elg.bg.