AIB has agreed to buy a 49.99% stake in Bulgarian-American Credit Bank (BACB) for €216m in cash.
AIB is buying the stake from BACB's majority shareholder the Bulgarian-American Enterprise Fund.
BACB provides loans to small and medium-sized companies in Bulgaria. BAEF is a private US company set up in 1991 under legislation enacted by the U.S. Congress to promote development of the economy in Bulgaria.
BACB was established in 1996 and listed on the Bulgarian Stock Exchange in March 2006. Based in the capital, Sofia, BACB has four offices in key regional cities and a network of mobile lending consultants who cover a further 15 cities. The company has 137 employees.
It earned net profits of €27m last year and had total assets of €358m.
AIB says the SME sector in Bulgaria is benefiting from EU accession, continuing foreign direct investment and structural spending.
Eugene Sheehy, CEO of AIB said: 'This investment is part of AIB's strategy for Central and Eastern Europe which involves acquiring and investing in businesses at reasonable valuations in targeted high growth markets and which operate in areas where AIB has core expertise.'
