Postfinance Money Transfer


Project address in Ethereum Network:


Current balance - 0 INO (Nobody sponsored the project)

About 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

goods retailers.

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

maximum 75:25.

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.


Financial forecast

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.


Results (1/2)


Key performance indicators (KPI)

The following paragraphs present the key performance indicators of the project providing

indicative valuation and risk assessment metrics.


Project NPV

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%


Results (2/2)

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






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