Frontex - Debt 2



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

05 Jul 2017



PSD disclosed:

02 Jun 2017

Project Description

EUR 6 million syndicated secured long-term loan to Frontex International, the third largest non-performing loan (NPL) asset manager in Bulgaria.

Project Objectives

The project provides finance to Frontex International in support of their expansion of NPL purchases from financial institutions, telecoms, other utility companies and other Bulgarian originators. It will allow the company to extend the maturity of and diversify the sources of its funding base.

Transition Impact

ETI score: 60

The transaction is the first syndication to an independent NPL asset management company in Bulgaria and will (i) support Frontex in further expanding its NPL purchases from financial institutions in Bulgaria, thereby contributing to the development of a strong and efficient NPL market, facilitating new lending to the real economy by the selling FIs and allowing both corporate/SME and retail debtors to become economically active again and (ii) introduce a new borrower asset class to international investors.

Client Information


Frontex is a Bulgarian debt servicing company, focused on the purchase of overdue receivables (SME and retail loans, telecom and utility bills), i.e. NPLs, from Bulgarian originators as well as collection of NPLs on behalf of Bulgarian originators for a fee. The company was established in 2009 by AG Capital, the largest group offering real estate related services in Bulgaria in order to provide solid financial backing for sustainable development in the acquisition of portfolios, as well as offering flexible debt collection solutions. In 2013, Emerging Europe Accession Fund (EEAF) managed by Axxess Capital acquired a majority stake in the company. EEAF's major investors are EBRD, EIF, DEG, BSTDB.

EBRD Finance Summary

EUR 3,000,000.00

EUR 6 million long term secured loan to be syndicated to co-lenders out of which the EBRD will be providing up to EUR 3 million.

Total Project Cost

EUR 9,000,000.00

Environmental and Social Summary

Categorised FI. Frontex's collection practices are in compliance with European standards for collection practices and data protection. Frontex is a member of the Association of Collection Agencies in Bulgaria (ACAB) although Frontex's code of conduct goes beyond that required by ACAB. Frontex are compliant with the Bank's Performance Requirements (PR) 2 and 4. SME NPLs will be included in this new transaction and Frontex will need to develop necessary environmental and social risk management, in line with PR 9. Frontex will need to continue to report annually on their compliance with the EBRD's PRs 2, 4 and 9 and to confirm their continuing compliance with EU standards and Bulgarian ACAB requirements for their debt collection and data protection.

Technical Cooperation and Grant Financing


Company Contact Information

Gabriela Dimitrova
+359 2 439 04 63

Implementation summary

As of February 2020, the Project has disbursed EUR 1.5m in total, which was utilised by Frontex to purchase overdue receivables. The project also ensured adherence to strict environmental, energy-efficiency and social standards. The Company is compliant with the Bank's Performance Requirements (PR) 2, 4 and 9, as well as with EU standards and Bulgarian ACAB requirements for their debt collection and data protection.

As a part of the Transition impact, the Project has supported Frontex in its NPL purchases from financial institutions in Bulgaria, thereby contributing to the development of the NPL market, facilitating new lending to the real economy by the selling FIs and allowing both corporate/SME and retail debtors to become economically active again.

PSD last updated

06 Jul 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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