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Notice of Financial Instrument Revaluation

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In connection with the Law on the Introduction of the Euro in the Republic of Bulgaria, promulgated in the Official Gazette, No. 70 of 20.08.24 (the Euro Law), as of the date of the introduction of the euro as the official means of payment in the Republic of Bulgaria, all financial instruments denominated in levs owned by the Bank's clients will be converted from levs to euros by default, in accordance with the general principles and rules set out in the Euro Law.

According to the general rules for conversion and rounding under the Euro Law, the conversion from levs to euros will be carried out by dividing the numerical value in levs by the full numerical value of the official exchange rate, expressed in six digits, with all five decimal places.

The resulting amount in euros is rounded to the second decimal place, based on the third decimal place, in accordance with the following mathematical rule:

  • If the third decimal place is less than 5, the second decimal place remains unchanged;
  • If the third decimal place is equal to or greater than 5, the second decimal place is increased by one unit.

The conversion of financial instruments from levs into euros will be carried out in accordance with the rules described in the Euro Law, as follows:

The market operator, respectively the investment intermediary organizing a trading venue, converts the market value of non-cash financial instruments admitted to trading on a trading venue from levs into euros, in compliance with the general rules for conversion and rounding of the Euro Law, unless special rounding rules are provided for in a law or in an act of the European Union for the relevant financial instrument.

"Central Depository" AD automatically converts the nominal value of non-cash financial instruments entered in the central securities register from levs to euros, subject to the general rules for conversion and rounding.

Within three business days before the date of introduction of the euro in the Republic of Bulgaria, all transactions and operations with non-cash financial instruments are suspended. Transactions and operations are resumed on the first business day after the introduction of the euro. All settlement systems provide the opportunity to conclude transactions in euros from this date.

  1. Shares

The conversion of the nominal value of shares and the conversion of the capital of commercial companies is carried out in a manner that does not affect the rights of shareholders and their shareholding in the capital.

The nominal value of 1 share is converted from levs to euros according to the general rules for conversion and rounding of the Law on the Introduction of the Euro in the Republic of Bulgaria

The total number of shares owned by the client does not change after the conversion of the nominal value of 1 share.

  1. Debt securities other than government securities (Bonds)

The total nominal value of 1 debt securities issue is converted from levs to euros according to the general rules for conversion and rounding of the Law on the Introduction of the Euro in the Republic of Bulgaria

The nominal value of 1 bond in euros is obtained by dividing the total nominal value of the bond issue, obtained in euros, by the number of bonds in the issue.

The conversion performed does not change the rights and obligations of the issuer and the holder.

  1. Government securities (Government securities)

The nominal value of all government securities in levs is converted once from levs to euros according to the general principles and rules for conversion and rounding.

The conversion of the nominal values for each individual account and each government securities issue is carried out by the Bulgarian National Bank.

In the issued registered certificates of ownership of government securities in levs, the values are considered to be values in euro when applying the general rules for currency conversion and rounding. The certificates are valid until the final repayment of the claims of the persons specified therein, arising from the right of ownership of government securities from the respective issue.

The market value in euro of government securities initially issued in levs is determined on the basis of the converted nominal value of the government securities and is calculated for 100 units of nominal value with two decimal places.

  1. Collective investment schemes and national investment funds and alternative investment funds

On the first business day from the date of introduction of the euro in the Republic of Bulgaria, the net asset value (NAV) of a collective investment scheme in euro is calculated, with the NAV in levs as of the end of the previous business day being converted in accordance with the general rules for currency conversion and rounding of the Euro Law. The NAV per 1 share in euro is calculated by dividing the converted NAV in the first sentence by the number of shares in circulation and rounding the resulting value to the fourth decimal place as follows:

  • when the fifth decimal place is less than five, the fourth decimal place remains unchanged;
  • when the fifth decimal place is equal to or greater than five, the fourth decimal place it is increased by one unit.

The issue price of 1 unit in euro and the redemption price of one unit in euro are rounded in accordance with the above rule, sentence two.

The above rules apply respectively to national investment funds and alternative investment funds.

For all other activities, services and products, the Bank will publish additional information in stages.