The European Bank for Reconstruction and Development is continuing its drive to develop Bulgaria’s promising agribusiness sector by providing long-term financing to local producers and exporters.
Through this latest transaction, the Bank is providing €22 million to support the expansion of Oliva, one of the largest producers of sunflower oil in Bulgaria
The EBRD loan will enable Oliva to expand its production capacity and efficiency in order to meet increasing sunflower oil demand in the European Union. Expansion of the agribusiness sector, which historically contributed a much higher share of Bulgaria’s GDP, requires greater access to financing, both for capex requirements and also to improve related infrastructure.
With the proceeds of the EBRD loan, Oliva will construct a new crushing facility, purchase new oil extraction equipment, build a new silo and improve links with local farmers. This modernisation programme will also save energy and improve processing efficiency, thus increasing the competitiveness of a local producer while promoting higher and more sustainable standards in the industry.
In the agribusiness sector alone, the EBRD has directly committed more than €8 billion in over 470 projects in its region of operations, from central Europe and the Western Balkans to eastern Europe, Turkey and central Asia.
Since the beginning of its operations in Bulgaria the EBRD has invested more than €2.5 billion in over 200 projects in various sectors of the country’s economy. With total project value exceeding €8 billion, the EBRD’s funds have helped mobilise over €5.5 billion in co-financing from other sources.