Industrial Holding Bulgaria will float convertible bonds, the shareholders of the company decided at a general meeting today. A total of 70.35% of the capital of the holding company was represented at the meeting.

The par value of the issue will amount to 22 mln leva (11.24 mln euros), while the par and and the issue of the bonds is set at 100 leva (51.12 euros) apiece.

The bonds will mature in three years and will carry an annual interest of 8%. At least 11 mln leva (5.62 mln euros) worth of bonds have to be subscribed and paid in order for the issue to be successful.

The shareholders authorized the management board of the company to select the method of calculation and payment of interest, as well as the rights to bonds ratio and bonds to shares conversion ratio.

If the bond issue amounts to 22 mln leva, a total of 198.89 shares will allow each shareholder to subscribe one bond with 100 leva par and issue value.

Industrial Holding Bulgaria will use the proceeds from the issue fund investment projects of subsidiaries specializing mainly in ship building, port activity, transportation and machine building.

A total of 2.636 mln leva (1.34 mln euros) of Industrial Holding Bulgaria's 3.727 mln leva (1.9 mln euros) profit for 2007, will be allocated to the Reserves Fund. The remaining 1.091 mln leva (557,800 euros) will be booked as retained profit.

The company will be able to raise its capital to 100 mln leva (51.12 mln euros) over the next five years, the shareholders decided today.