A Dutch-registered unit of Bulgarian business conglomerate Chimimport has placed a 65 million euro corporate bond with an option to increase the size of the issue by up to 15 million euro. The proceeds will be invested in the expansion of the company through strategic acquisitions and for general business purposes, the company said in a statement.

The seven-year convertible bonds have a seven per cent interest coupon.

If Chimimport shares appreciate by more than 130 per cent over the conversion price set at 10.984 levs per share, the company has the option to buy back the bonds at its own discretion, but no sooner than August 22 2011.

The short-term goals of the company include the merger of the Lukoil Garant and CCB Sila pension insurance companies and air carriers Hemus Air and Bulgaria Air, Chimimport said back in June.

The company also plans to snag banking assets with a solid regional footprint in Russia and the Ukraine. Chimimport has so far entered the Macedonian banking market through its subsidiary Central Co-operative Bank.

Over the midium term, Chimimport plans to consolidate its real estate operations related to the building of two sports complexes and a retail center in Varna, a Borovets hotel and the Golf Shabla resort.

Over the last couple of years, the conglomerate raised cash mainly through the issue of new shares.

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