About us

DILINGOVA FINANSOVA KOMPANIA (The Company) has been founded in 1992. Until 1997 the company was a financial brokerage company. Since acquiring a licence from the Securities and Exchange Commission in June 1997 The Company started operating as an investment intermediary as well. The company has a one-level management body – a Board of Directors, comprised of three board members. The establisment of the company was initiated by the aspiration of its founders to respond adequately to market demands and to offer services of high quality in the field of financial intermediation and later – in the field of investment banking. The development of the company during the years has been based upon maintaining solid relationship with clients with an accent on offering diverse and complete products and services as a fundamental for building up lasting and correct relationships.

DILINGOVA FINANSOVA KOMPANIA is a licensed investment intermediary (license No. RG-03-0091/24.02.2006 issued by the Financial Supervision Commission- FSC) with the following subject of activity:

  • Reception and transmission of orders in relation to one or more financial instruments;
  • Execution of orders on behalf of clients;
  • Portfolio management;
  • Provision of investment advice to clients;
  • Placing of financial instruments without an unconditional and irrevocable commitment to acquire the financial instruments on own account;
  • Safekeeping and administration of financial instruments for the account of clients, including custodianship (holding clients’ financial instruments and cash at a depositary institution) and related services, such as cash/collateral management;
  • Granting loans for effecting of transactions in one or more financial instruments, subject to the condition that the person granting the loan is involved in the transaction under terms and according to a procedure established in an ordinance;
  • Advice to undertaking on capital structure, industrial strategy and related matters, as well as advice and services relating to mergers and the purchase of enterprises;
  • Provision of foreign exchange services, insofar as they are connected with the investment services provided;
  • Investment research and financial analysis or other forms of general recommendations relating to transactions in financial instruments.

Our company is a registration agent according to a contract signed with the Central Depository and this allows us to offer additional services to our clients.


  • Bulgarian Stock Exchange (BSE) member,
  • Central Depository (CD) member

Since 1997 The Company has actively participated on the Bulgarian capital market. The activities of the company during the years have assigned to it a respectable place in the statistics of BSE. Our company participates actively in the process of restructuring and privatization of state companies. It is one of the major investment intermediaries that have contributed to the finalization of privatization deals through acquiring shares at Centralized Public Auctions. The most significant deals were with the following companies:

  • “Holcim Bulgaria”;
  • “Pleven Cement”;
  • “Holcim Quarry Materials”;
  • “Quarries”;
  • “Delta Com Holding”;
  • “Khan Asparuh”;
  • “Caproni”;
  • “Swedish Match Palm Bulgaria”;
  • “Hemusmark”;
  • “Enersys Holdings (Luxembourg) S.A.R.L;
  • “Energia” Targovishte Etc.

The use of investment vouchers during the mass privatization and in consequence compensatory instruments as non-cash payment for buying government and municipal property gave an additional impetus for the development of the market in Bulgaria. During those processes DILINGOVA FINANSOVA KOMPANIA managed to make a significant turnover with compensatory instruments and investments bonds. One of the main activities of the company is the preparation and carrying out of tender offers. During the years, we have successfully carried out tender offers for the following companies:

  • “DZU” – Stara Zagora;
  • “Hemusmark” – Burgas;
  • “Khan Asparuh”- Isperih;
  • “Caproni” – Kazanlak;
  • “Rubin” – Pleven;
  • “Napredak Holding” – Sofia;
  • “Energia” Targovishte.

The Company has the ambition to assist corporate clients by offering investment services concerning the process of preparation of debt or capital financing through issuing of bonds or shares. In particular, our company has prepared the prospectuses for secondary public offering and has carried out the trading registration on BSE – Sofia Inc. of the following companies:

  • “A.V. Buildings”- Sofia;
  • “Metron”- Prolesha;
  • “Velina”;
  • “Bulgary Reserve Properties”.


The investment intermediary offers the following services to its clients:

  • purchase and sale of corporate securities on BSE;
  • purchase and sale of compensatory instruments;
  • purchase and sale of rights for participation in capital increase procedures of public companies;
  • registration of shares of new issues or participation in capital increase procedures of public companies;
  • preparation and carrying out of tender offers for the purchase or exchange of shares from the capital of public companies;
  • preparation of prospectuses for the initial and secondary offering of securities;
  • registration for secondary trade on the Bulgarian Stock Exchange of already placed issues of securities (registration of securities);
  • purchase and sale of government bonds;
  • registration agency concerning securities.

The investment intermediary DDILINGOVA FINANSOVA KOMPANIA, in consistence with a contract concluded with a client offers individual services concerning the management of clients’ portfolios. This kind of services aims at clients who prefer to entrust their money to a professional such as an investment intermediary that will make discretionary investment decisions and in this way will pursue a positive return for the clients. A common characteristic of this type of contracts is that the clients may or may not set limits to the different types of investment instruments included in their portfolio. The client’s expected return is defined according to the risk tolerance of the client and his or her constraints and investment horizon. The clients that have entrusted us their money for management receive a regular report for the deals made on their behalf monthly or on request. The client can terminate the contract for portfolio management at every moment without paying additional charges.

The activities related to the organization and management of the processes of initial and secondary placement of securities for the purpose of improving the financial structure of a company, consisting of raising up new capital by the means of issuing debt (bonds) or capital (shares), are associated with the so called investment banking. The Company offers services that include the whole organization of the process (examining the client’s needs, choosing a specific kind of financing, marketing analyses, preparation and taking a decision by the adequate company body, preparation of a prospectus or memorandum) and the actual placement of securities (preparation, informing the potential investors and organization of the placement procedure of the securities on the official or unofficial market).

DILINGOVA FINANSOVA KOMPANIA is also engaged in additional services related to investment consulting and analyses of certain companies. We provide to our clients up-to-date and reliable information for making investment decisions.

The investment intermediary offers the following services to its clients:

  • purchase and sale of corporate securities on BSE;
  • purchase and sale of compensatory instruments;
  • purchase and sale of rights for participation in capital increase procedures of public companies;
  • registration of shares of new issues or participation in capital increase procedures of public companies;
  • preparation and carrying out of tender offers for the purchase or exchange of shares from the capital of public companies;
  • preparation of prospectuses for the initial and secondary offering of securities;
  • registration for secondary trade on the Bulgarian Stock Exchange of already placed issues of securities (registration of securities);
  • purchase and sale of government bonds;
  • registration agency concerning securities.

The capital market in Bulgaria

The institutional frame of the capital market in the country is determined by the Law on Public Offering of Securities (in force from the beginning of 2000) that defines the activities of the participants on the market, the major institutions and the regulatory frame. The following three institutions act on the capital market:

BSE is a joint stock company licensed by the Securities and Stock Exchange Commission (now FSC). Its aim is to organize the official and unofficial markets and to provide to its members and their clients equal access to market information and equal opportunities for participation in the trading. Shareholders of BSE are the members of the stock exchange (investment intermediaries and commercial banks) and the Bulgarian state. The method of trade ensures that the bid and ask orders are brought into the electronic trading system continuously during the trade session. Orders are matched automatically by the system with priority of price and time. Clients’ orders have priority to the ones on behalf of the investment intermediaries. The minimum tick size is 0.001 BGN. A system for non-attendance trade was introduced in September 2000 that allows the investment intermediaries to deal from their offices without the need of their physical attendance on the BSE „floor“.

FSC is the major regulatory body that regulates the activities of all participants on the capital market in Bulgaria and watches for compliance with the adequate laws. The FSC issues licenses for performing the corresponding activities to institutions that organize the market of securities, investment intermediaries, investment companies and funds, companies with special investment purposes and others. The FSC as well approves the prospectuses for public offering of securities and registers issues of securities in the public register. The major priorities in the work of the FSC concerning investment activities (except from investment activities FSC is the regulatory body for insurance and complementary social insurance activities) are protecting the interests of the investors and providing stability, transparency and confidence in the financial markets, as well as organizing an efficient market of securities.

CD is the institution where the register for all dematerialized securities is kept and administrated. CD is a joint stock company. Its shareholders are various financial institutions (investment intermediaries and commercial banks), the Bulgarian National Bank and the Ministry of Finance. Its subject of activity is determined by its nature of the only one registration body for dematerialized securities and involves opening and keeping of accounts for securities, registration of transactions with securities, administration of securities (including keeping books for dematerialized shares and bonds), and others. The CD under special rules finalizes all transactions with dematerialized securities. These rules are obligatory for the investment intermediaries.

Investment opportunities

Investors in Bulgaria, as well as investors all over the world, often ask themselves questions concerning the investment opportunities they are facing:

  • How to choose the right investment among the variety the market offers;
  • Particularly in what to invest my money;
  • What can I expect from the investment;
  • Is there any risk for the invested money;
  • Do I prefer one investment instrument to another and so on.

Most generally, in order to choose the best investment the investor has to be acquainted with various financial instruments and potential risks and returns.


In general, corporate securities are securities issued by companies in order to finance their activities. They can be divided into capital, debt and derivative ones.


Shares are capital securities that materialize the right of ownership upon a differentiated part of the company. Shares give the following major rights: the right of voting at the General Meeting of shareholders, the right to receive dividends, as well as the right to liquidation share. Except this, every shareholder has the right to acquire a certain number of shares (proportional to the number of his/her shares in the company) if the capital of the company is raised. This is accompanied by the temporary existence of derivative securities – the so-called rights. The return on an investment in shares is composed of the dividends received and the difference between the purchase price and the sale price (capital gain). The risk of investing in shares is bigger than the one of investing in bonds but the expected return is also significantly higher. On an efficient and well developed market shares are highly volatile and reflect the whole available information concerning the activity of the issuing company and this is a prerequisite that relative more speculative players use shares as a major instrument.

Corporate bonds

Corporate bonds are securities that materialize investors’ receivables from the issuer of the securities in connection to a loan and that determine their character of debt securities. The return is composed of the coupon payments and the difference between the purchase price and the sale price. Quite often the principal and/or the coupon payments of bonds are secured by another asset (secured bonds). The corporate bonds are a relatively lower risk investment with preliminary fixed or floating coupon. In fact, the bondholder is a creditor to the issuing company. His receivables related to the principal and coupon payments are a senior obligation in comparison with those of shareholders. Bonds are securities with relatively low volatility and changes in their prices depend mostly on their maturity, the size of coupon payments and the interest rates. This kind of instruments is suitable for conservative investors looking for an alternative to bank deposits and government bonds.

Securities issued by private (non-public) companies

Except investing in public companies and issues, there are attractive opportunities to make a direct investment in the capital or debt of a private company. A lot of industry sectors now undergo deep restructuring, others are emerging. This gives investors and entrepreneurs the chance to take advantage of the potential growth of the Bulgarian economy. The liquidity risk is the additional risk that these securities have in comparison with listed securities because they are not traded on the Stock Exchange.

Derivative securities (derivatives)

Derivatives are securities that derive their value from another asset (commodities, securities, etc.) Derivatives are rights, warrants, options, future contracts and a large number of other securities.


As a matter of fact they do not differ from corporate bonds mortgage bonds are corporate securities. The difference is that they are issued by banks or municipalities and as a whole are considered to be less risky. Mortgage bonds are additionally secured securities.


Government bonds are securities issued by the Ministry of Finance as a representative of the state and they materialize government debt. Bulgarian or foreign individuals and companies can be holders of government bonds. Government bonds in circulation are separate issues that possess unique features such as:

  • the number of the issue – a letter-and-number code that identifies the issue;
  • date of the issue – the day of issue and from which the maturity date is calculated;
  • maturity – the day on which the face value of the issue is paid and the liability of the state towards the holders of the bonds is terminated;
  • face value – the value that is paid to the holders of the government bonds on the maturity date;
  • interest rate – the interest rate charged on the face value in order to calculate the value of the interest due. They are often referred to as interest coupons.

It could be said that the investments in government bonds are:

  • very safe – the payment of the face value on the maturity date and the interest coupons is guaranteed by the state;
  • highly liquid – the volumes of government bond issues are very large and there is a developed secondary market for them where investors could sell the government bonds they possess before the maturity date with transaction costs amounting almost to null.

According to their maturity government bonds could be classified as:

  • short-term – issued with maturity of less than a year;
  • middle-term – with a maturity between one and five years;
  • long-term – with a maturity longer than five years.

According to the kind of return of the government bonds they could be classified as:

  • interest-bearing – they are issued at a price equal or higher than their face value and an interest;
  • discount bonds – they are issued at a price below face value. Their return is the difference between the price at which the bonds are bought and the face value payable at the maturity date;
  • discount interest-bearing bonds – they are issued at a price below face value and an interest. Their return is composed of the discount from the face value and the interest.


The so-called ZUNK bonds are in circulation as well. As a matter of fact they are government bonds issued in accordance with the Law for Settling Non-Serviced Credits, granted until 31st December 1990. ZUNKs are government bonds and possess all their features.


Compensatory instruments are issued by the corresponding representatives of the Bulgarian state (state departments, district administrations and land commissions) in order to compensate persons or their legatees whose estates, buildings or agricultural land are taken by the state or alienated. Compensatory instruments are nominal – issued to a concrete person – and (except compensatory receipts from converted housing deposits) are transferable without any limitations. They can be used as a resource for paying in privatization deals and with them shares of the capital of the privatized company could be acquired. After they were listed on the stock exchange, compensatory instruments became not only a resource for paying in certain privatization deals but also an actively traded instrument with high liquidity. The return from investments in compensatory instruments has a highly speculative nature and investors need to have in mind that they are not securities (although they are traded as such), they have a temporary status and they are not secured by real assets.