EBRD signs a portfolio guarantee for ProCredit Bulgaria to unlock €50 million of green finance

• EBRD signs InvestEU facility with ProCredit Bank Bulgaria to boost green transition
• EBRD will share risk on a portfolio of new loans to companies, allowing the Bulgarian bank to lend more
• Portfolio guarantees will cover loans in Bulgaria and Greece

The European Bank for Reconstruction and Development (EBRD) has teamed up with ProCredit Bank Bulgaria EAD (PCBB), a commercial bank operating in Bulgaria and Greece and a key player in financing small- and medium-sized enterprises, to provide a €14 million portfolio guarantee under the European Union’s InvestEU programme.

The guarantee will support PCBB to expand new lending to finance green investments in energy efficiency and renewable energy across industry sectors in Bulgaria and Greece. The Bank’s guarantee will be supported by partial first loss risk cover from the European Union under the InvestEU Fund.

The project will support both Greece and Bulgaria in their green economic transition, as well as help PCBB build resilience by optimising its capital base.

The guarantee will support the EBRD’s strategic goals in the two countries by strengthening the resilience of the local banking sectors 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 investments, hence promoting stronger energy savings and CO2 emissions reduction.

ProCredit Bank Bulgaria, Bulgaria’s seventh largest bank, is a subsidiary of ProCredit Holding, in which the EBRD holds an 8.7 per cent stake.

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 €4.8 billion in more than 300 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.