Avangard Deposits will allow investing on international markets with the safety of a Bulbank deposit and a minimum guaranteed return

Bulbank announces today the launch of three new investment proposals to its clients – the structured term deposit Avangard 6 – Avangard 7 and Avangard Range. Those structured term deposit are an innovative products that guarantees the principal and a minimum return for the period, with the opportunity of potential significant upside for its clients, depending on the development of the international markets. The three issues in the market since xx until yy, will have a total amount of 12 mn Euro

The performance of two of the new Avangard Deposits are directly linked with the performance of a basket of Pioneer mutual funds. Previous similar Avangard Deposits issued in 2004 have provided impressive performance of 4.80% to 7.23% return to its clients. Additional upside of the third Avangard deposits is linked to the movements of euro – dollar exchange rate.

Bulbank launched at the end of 2003 with great success for the first time this innovative product on the Bulgarian market, and up to now five different issues were successfully issued by the Bank. More than EUR 15 million are invested by Bulgarian clients in such deposits till today. The products are developed together with UBM, the investment bank of UniCredit Group and Pioneer. Similar capital guaranteed investment products were extremely successfully placed in Italy and other countries. The three different products have different investment profile.

“We are delighted to launch in a more significant and diversified scale such innovative products in the Bulgarian market. Avangard deposits will provide our clients the possibility to combine the total comfort and safety of a Bulbank Deposit with the potential upside of a mutual fund investment on International markets and to benefit in addition of a minimum guaranteed return. We had already launched 5 Avangard issues in the recent past and all of them had a tremendous success, but were reserved mainly to existing Bulbank’s clients. This time we want to give the opportunity to new clients to invest in Avangard Deposits and we expect a lot of interest from new clients on this product similar to what happened with Pioneer Funds. Bulbank is more than ever the more innovative Bank in providing best investment solution for savings of Bulgarian depositors.”, Mr. Alessandro Decio, Chief Operating Officer of Bulbank says.

• Avangard 6 is a 3.5 years USD deposit with guaranteed principal and minimum return of 1% for the period. In addition the client will receive 70% of the performance of a basket of mutual funds. The monitored funds, denominated in USD are Pioneer America, World Equity and International Bonds.

• Avangard 7 is also 3.5 years Euro deposit with guaranteed principal and minimum return of 1% for the period, with additional rebate of 70% of the performance of a basket of Euro denominated mutual funds – Pioneer Mix 3, Leading European Companies and Euro Bonds. For this issue Bulbank ensures that positive measurements with higher than the initial levels will be taken into account with 1.15 coefficient providing the client with higher income at the end of the period.

• Avangard Range is two-year deposit for USD investment with guaranteed principal and minimum interest of 1% and maximum of 7% for the period. The maximum interest will be given to the client if the EUR / USD exchange rate stays in the range of 1.03 – 1.50 as it is announced by European Central Bank. The clients may receive information for the dollar – euro rates each day.