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- EBRD agrees InvestEU facility with Bulgaria’s UniCredit Bulbank
- EBRD will share risk on lending, allowing Bulgarian bank to finance more green projects
- Portfolio guarantee will unlock €100 million of new lending
The European Bank for Reconstruction and Development (EBRD) has teamed up with UniCredit Bulbank, a commercial bank incorporated in Bulgaria, to provide €50 million in guarantees under the European Union’s InvestEU programme.
The guarantee will support UniCredit Bulbank’s business, unlocking €100 million of new lending to finance green investments in energy efficiency and renewable energy for buildings and sustainable transport.
The EBRD’s guarantee will be supported by partial first loss risk cover from the European Union under the InvestEU Fund, with further technical cooperation being provided under the InvestEU programme.
EBRD’s Head of Bulgaria, Manuela Naessl, said: “We are delighted to sign this portfolio guarantee agreement with UniCredit 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.”
Tsvetanka Mincheva, CEO of UniCredit Bulbank, said: “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, support for 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.”
The project will support Bulgaria, Europe’s most carbon-intensive economy, in its transition to a green economy. It will also help UniCredit Bulbank to build 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 the green transition. It will help bridge the investment gap, supporting the achievement of national and EU energy and climate targets.
The projects financed will meet strict EBRD green transition criteria, focusing on energy efficiency and the reduction of CO2 emissions.
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 investment 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 invested nearly €5 billion in 315 projects in Bulgaria to date. 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.