On August 3, BNP Paribas (BNPP) said that it was acquiring Bulgaria’s leading consumer credit specialist JetFinance International (JFI) through its subsidiary Cetelem.
The bank said the move meant consolidating its pole position in this sector in continental Europe.

JFI is a specialist in consumer credit and has 800 employees. It operates in more than 150 towns in Bulgaria, offering its products through nearly 3600 sales outlets via its own branch network. Its distribution model is very similar to that developed by Cetelem in a number of countries throughout the world. With about 500 000 clients, JFI’s business volume and outstanding loans grew by more than 60 per cent in 2006. Thanks to a quality management team and motivated staff, this trend continued throughout the first half of 2007, the statement said.

This is a strategically important investment for BNP Paribas, giving it access to a retail client base.  Bulgaria, with forecast annual GDP growth of about five per cent until 2009, enjoys one of the highest levels of growth potential in Central and Eastern Europe, according to the bank.

For Cetelem, this acquisition reinforces its regional coverage, confirming its capacity to offer its partners a truly pan-European service. Central and Eastern Europe are already priority targets for Cetelem having already established roots in Hungary and the Czech Republic as long ago as 1996. Cetelem is also present in Poland, Slovakia, Romania, Serbia, Turkey, Ukraine and Russia. Moreover, Cetelem ranks among the top 3 consumer credit operators in Bulgaria thanks to this acquisition.
“This acquisition reflects Cetelem’s keen desire to develop its business in emerging economies and in countries that have strong growth potential. Our emerging markets business already accounts for 15 per cent of the company’s net banking income,” Cetelem chairperson and managing director Francois Villeroy de Galhau said in a statement.

“In Cetelem, the management and employees of JetFinance have found the perfect shareholder. This transaction will allow JetFinance to continue to consolidate and further develop its leading position in the consumer finance industry in Bulgaria,” said Cetelem’s chief executive Elvin Guri.

The transaction is subject to approval by supervisory authorities.

JetFinance International was established in 2001 by two top executives, Elvin Guri and Ivan Hristanov, the company’s current chief executive officer and chief operating officer, respectively.  JetFinance International is owned mainly by AIG Investments through the AIG New Europe Fund, a fund sponsored by AIG Capital Partners, Inc.

A BNPP Group company, Cetelem was a pioneer in the field of consumer credit back in 1953 and of internet credit since 1997. It is now market leader in France and in continental Europe, with more than 58 billion euro of outstanding loans and 23 000 employees as of end June 2007. Cetelem is present in 29 countries. Cetelem lends its know-how in the field of consumer credit to retailers, banks and insurance companies.

BNPP - Sofia Branch is a commercial and investment bank in Bulgaria. It serves large and medium-sized corporate and institutional clients, throughout the major sectors in the economy. The bank offers a wide range of commercial and investment bank services, as well as customer-tailored financial solutions with advisory components. BNPP has been present in Bulgaria since 1994.