New energy efficiency credit line for Bulgaria

By EBRD  Press Office
@ebrd

The EBRD is continuing to promote energy efficiency and renewable energy projects in Bulgaria with a €10 million credit line to DSK Bank for on-lending to local private companies investing in sustainable energy projects. 

The financing to DSK Bank, a leading bank in Bulgaria, wholly-owned by Hungary’s OTP Bank, is extended under the EBRD’s Bulgarian Energy Efficiency and Renewable Energy Credit Line Framework (BEERECL).

The proceeds of the loan will be used to support companies investing in industrial energy efficiency and small renewable energy production projects. The EBRD loan is supported by grant financing provided by the Kozloduy International Decommissioning Support Fund.

This will be used to encourage Bulgarian enterprises to implement energy efficiency and renewable energy projects, as well as to provide technical assistance in preparing investment projects.

“Improving energy efficiency is one of the EBRD’s key priorities. The project will encourage Bulgarian businesses to invest in rationalisation of energy use, thus helping them to improve their efficiency and overall competitiveness”, said Daniel Berg, Director Bulgaria, EBRD.

Violina Marinova, DSK Bank’s CEO, added:  “Our positive experience with the EBRD-granted credit facilities designed to encourage energy efficiency projects for households gives us grounds to believe that our future joint work will be very fruitful. Lending for projects in the corporate client segment is yet another step towards maintaining the country’s economic sustainability.”

Previously the EBRD provided DSK Bank with a similar €10 million BEERECL credit line as well as a €10 million credit line for energy efficiency projects in the residential sector both of them successfully implemented.

Overall the EBRD has offered €137.5 million in credit lines to Bulgarian banks under the BEERECL. The funds have supported the implementation of over 140 small energy efficiency and renewable energy projects that helped Bulgarian companies save over 1 million MWh per year.

Since the beginning of its operations in Bulgaria the EBRD has invested over €2 billion in various sectors of the country’s economy, mobilising additional investment in excess of €5 billion.