- EBRD signs InvestEU facility with Bulgaria’s Unicredit Bulbank AD
- EBRD will share risk on lending, allowing the Bulgarian bank to finance more green projects
- Portfolio guarantee will unlock €100 million of UCB lending
The European Bank for Reconstruction and Development (EBRD) has teamed up with Unicredit Bulbank AD, a commercial bank incorporated in Bulgaria, to provide €50 million in guarantees under the European Union’s InvestEU programme.
The guarantee will support UCB’s business, unlocking €100 million of new lending to finance green investments in energy efficiency and renewable energy in buildings and sustainable transport projects.
The Bank’s guarantee will be supported by partial first loss risk cover from the European Union under the InvestEU Fund with further technical cooperation under the InvestEU programme.
EBRD’s Head of Bulgaria, Manuela Naessl said: “We are delighted with this collaborationto sign this portfolio guarantee agreement with UCBUnicredit Bulbank today. It will allow one of our key partner financial institutions in Bulgaria to scale up sustainable lending to the real economy, which is key to helping Bulgaria meet its energy and climate targets, contributing to the country's green transition.”
“The signing of the guarantee scheme with the EBRD represents a significant milestone in our mission to accelerate the transition towards a sustainable economy. At UniCredit Bulbank, the support of green investments represents a strategic priority that generates tangible value for businesses, society, and the environment. This guarantee will enable us to extend further support to companies and projects that invest responsibly and innovatively. As the bank for the future of Europe, we lead by example – through green financing, ESG commitments, and a vision of success measured by the positive impact we create in the world around us,” stated Tsvetanka Mincheva, Chief Executive Officer of UniCredit Bulbank.
The project will help Bulgaria, Europe’s most carbon-intensive economy, in its green economic transition. It also supports UCB in building resilience by optimising its capital management and freeing up lending capacity to scale up sustainable financing activities.
The guarantee will support the EBRD’s strategic goals in Bulgaria by strengthening the resilience of the local banking sector and contributing to green economy transition. It will help bridge the investment gap towards reaching the national and EU energy and climate targets.
The projects financed will meet strict EBRD criteria for green economy transition, focusing on energy efficiency and CO2 emission reduction.
UniCredit Bulbank, Bulgaria’s third largest bank, is a subsidiary of Italy’s Unicredit SPA.
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery and growth. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition.
The EBRD, a leader in climate finance, has to date invested nearly €5 billion in 314 projects in Bulgaria. It is one of the main partners of the InvestEU Programme and deploys portfolio risk sharing instruments for financial intermediaries across the EU countries where it operates.
Additional media information:
Ekaterina Ancheva, tel +359 894 518 193 , flbufsjob/bodifwbAvojdsfejuhspvq/ch
Ina Gerdzhikova, tel +359 894 500 495, job/hfse{ijlpwbAvojdsfejuhspvq/ch