MUNICIPAL BANK PLC was established in 1996 as a universal commercial bank. The Sofia Municipality and a number of other Bulgarian municipalities and companies hold shares in the Bank. The Bank displays dynamic and stable development expressed in a continuous growth of the main financial indicators, maintaining partnership with over 200 banks from Bulgaria and abroad, a network of 55 branches and offices in 19 regions around the country, a portfolio of over 200,000 customers. The wide product range, the favourable price levels of the services rendered and the proven ability to structure and service investment projects, including via organising foreign finance, and debt issues place the Bank in a leading position on the Bulgarian financial market. The clear and lucid shareholders’ structure, the quality of management and the financial results have allowed Municipal Bank PLC to receive a high international credit rating from Standard and Poor’s even in the fourth year since its existence.

Encouragement bank AD was incorporated on 15 January 1999 as a fully state-owned institution with the special purpose of providing in priority medium- and long-term financing to the Bulgarian small and medium-sized enterprises (“SMEs”) and of promoting Bulgarian export. The establishment of Encouragement Bank AD, as an economic growth contributing institution is one of the measures undertaken by the Bulgarian State to promote the establishment and development of SMEs. Encouragement Bank AD holds a full banking license issued on 11 March 1999 by the Bulgarian National Bank. The Bank is also a licensed financial intermediary and broker. Encouragement Bank functions as a joint stock company, with a majority shareholder the Ministry of Finance of the Republic of Bulgaria. The registered share capital of Encouragement Bank amounts to EUR 15,120,690 (BGN 29,573,500). Although owned by the Bulgarian Government, Encouragement Bank is a market-driven institution, operating alongside with other commercial banks in Bulgaria.

Encouragement Bank operates professionally by competitively responding to the financing needs of its clients and partners - the Bulgarian SMES. The Bank promotes the country's sustainable economic growth by providing financial support to viable and efficient projects, particularly in the field of environment protection, thereby stimulating the development of Bulgarian enterpreneurs and ultimately-financing the future.