Project address in Ethereum Network:
Current balance - 0 INO (Nobody sponsored the project)
► Postfinance EAD was established in 2005. In 2013, PF acquired the
money transfer business (incl. contracts, registrations, etc.) from
Finance Engineering AD, a company also run by the project
sponsor, Mr. Tabakov. The company has already established 45
offices throughout the country.
► expanding the geographical presence of PF through
investments in retail outlets (c. 160 own offices and c. 32
rep offices at retail locations) and broader service offering.
In particular, PF plans to increase its money transfer
operations by penetrating domestic and cross-border
transfers at competitive prices. The Project sponsor holds a
postal transfer license and is a member of several postal
transfer organizations with significant coverage of European
countries and Russia.
The products and services
► Postfinance will be focused on three main service areas:
1. Factoring. The project sponsor has significant prior experience in
providing factoring services on the Bulgarian market and has
identified a growing business demand for factoring services. The
company plans to target suppliers of major fast-moving consumer
2. Money transfers. Currently, Postfinance operates 45 offices in Bulgaria and more than 500 000 world locations of our partners.
providing money transfer to individual and business customers
3. Cards. Postfinance will develop three credit card and one prepaid
card niche products utilizing its know-how, partner relationships
and office network:
Prepaid cards. These cards will be issued to emigrants residing
abroad similar to the remittance cards and to expats residing in
Project financing needs
► The required total financing for the Project amounts to EUR
7.9-9.2m. The debt to equity contribution is envisaged at
► The Project sponsor seeks a reputable equity partner to
provide an initial equity cash contribution of at least EUR 1m
with clear source of funds to cover approx. 75% of the initial
capital requirement for obtaining (1) an NBFI registration
and (2) payments institution license from the Bulgarian
National Bank (BNB).
► The Project sponsor is exploring various debt raising
options, incl. issuing bonds.
► The Project appraisal is based on a business plan covering a 10-year
The business plan assumes gradual repayment of the junior debt with
the available free cash flows prior to any dividend payments.
Remaining free cash after the loan repayment is distributed as
dividends to the equity owners.
It is noted that a more leveraged financing structure and/or relaxed
debt repayment schedule might change (and improve) the equity
return to the shareholders.
► Interest of 8.5% is assumed on the debt balance outstanding.
► Under the base case, the project requires a total of c. EUR 6.8m debt
financing and c. EUR 1.8m equity financing. The financing structure
and its evolution is indicated in the charts to the right.
Key performance indicators (KPI)
The following paragraphs present the key performance indicators of the project providing
indicative valuation and risk assessment metrics.
Free cashflow to firm (FCFF) estimated
by summing CFO and CFI, terminal value based Value - 4.3 M EUR
on the average of a multiple on Net Assets and a
Gordon’s growth model value.
Project IRR is based on the FCFF plus terminal Value 21.6%
Equity IRR is based on the projected equity
contribution, dividend payments plus terminal Value 30.9%
Net income margin (forecast period) Median: 17.3%
ROA (forecast period) Median: 5.3%
ROE (forecast period) Median: 20.6%
The project operating results indicate:
► Stable profitability and cash generation potential
(considering net income margins and FCFF)
► The project profitability appears healthy and somewhat
resilient to deteriorations in key assumptions.
► Excellent operating ratios, including healthy profit margins,
returns on assets/equity.
The key conclusions from the project debt service results include:
► Healthy debt service indicators throughout the debt horizon
► Minimum interest coverage ratio consistently above unity
under all scenarios tested
The project shows reasonable returns driven by the assumed
volumes and profitability:
► Project IRRs are impacted mainly by volumes and fee income