August 25, 2008

DT&T has counseled a high profile pioneer transaction in Bulgaria: the €65 million 7% seven-year secured exchangeable bonds of Chimimport AD

The second-largest by market capitalization listed company in Bulgaria Chimimport AD sold equity-linked bonds to international investors in a private placement transaction

Chimimport AD (“Chimimport”) is the first Bulgarian corporate to issue exchangeable bonds (the “Bonds”). The Bonds are issued by Chimimport Holland B.V. (the “Issuer”) - a wholly owned Dutch subsidiary of Chimimport and are exchangeable for ordinary shares of Chimimport listed on the Bulgarian Stock Exchange. The Issuer will on-lend the proceeds of the Bonds to Chimimport which intends to use the net proceeds for financing expansion through strategic acquisitions and for general corporate purposes. The equity-linked bonds provide Chimimport with access to the European capital markets and the expansion of its existing investor base. The transaction also aims to provide flexibility and diversity to Chimimport’s funding mix on terms preferential to those proposed by other financing alternatives.

UniCredit Market & Investment Banking (Bayerische Hypo- und Vereinsbank) acts as Sole Bookrunner on the transaction. The working party list also includes Clifford Chance (London and Amsterdam), Simons & Simons - Amsterdam, Boyanov law firm - Sofia, UniCredit Bulbank - Sofia.

The large-scale Bulgarian holding Chimimport operates in different sectors, including banking, insurance, pension funds, oil & gas, chemistry, air and water transport. Chimimport is listed on the Bulgaria Stock Exchange since October 2006 (6C4 BU).

The priority investments of the Chimimport group (the “Group”) are focused in the following sectors:

• Financial services: Chimimport offers a wide range of financial services covering the full spectrum – banking, non-life insurance, pension insurance, assets management and securitization
• Transport: The transport sector is of strategic importance within the Group. It is consolidated in several sub-holdings managing activities in aviation, river and sea transport services
• Aviation: Chimimport owns the two major air carriers in the country, including the national flag carrier - Bulgaria Air
• Shipping: Chimimport is the market leader in river shipping operating through Bulgarian River Shipping AD
• Airports, Ports & Ground Services: Chimimport is expanding its position in airports and ports concessions (Varna and Burgas) and services (sea and river); Chimimport also provides ground services and MRO operations for aviation (via a JV with Lufthansa Technik)
• Industrial Holdings: These holdings include grain production and trading, oil & gas exploration and production, bio fuels production and chemicals trading
• Agriculture: Zarneni Hrani Bulgaria AD is market leader in vegetable oil production and its activities include trading and storage of grain crops, trading and storage of oilseeds crops, production and trading with edible oil and development of biodiesel business
• Oil and Gas: Oil and Gas Exploration and Production AD currently operates 12 concessions for drilling of crude oil and natural gas and 3 exploration concessions
• Real Estate: The Group owns a number of properties including industrial/logistic centres and land plots in key locations in Sofia, Burgas, Varna etc.