An unfunded risk sharing limit under the Guarantee Window of the ESIF/EBRD Water Sector Financing Framework (the "WWW FW") of up to EUR 40 million with Raiffeisenbank (Bulgaria).
The main objective of the project is to facilitate the structuring of long-term bank loans to fund the investment programmes of regional water operators and ultimately to address the existing funding gap in the water and wastewater sector in Bulgaria, thus supporting the country in achieving compliance with the EU's urban waste water and drinking water directives.
The project is in line with the EBRD's strategic priorities outlined in the country strategy for Bulgaria (BDS/BU/19-01 (Rev 1)), to (i) support sustainable infrastructure development through regional connectivity, green municipal solutions, decarbonisation and resource efficiency and (ii) strengthen the resilience of financial intermediation.
ETI score: 60
The approval of a CIFI is in line with the expected arrangements and terms specified at the outset of the WWW FW.
In line with the framework approval, financing through commercial banks is viewed to carry the strongest transition impact.
RAIFFEISENBANK BULGARIA EAD
Raiffeisenbank (Bulgaria) is a key player on the Bulgarian banking market, ranking 6th among 24 banks with a market share of 7.7% in terms of assets at the end of 2019. It is among the leading universal banks in the country, offering bank services in all customer segments - corporate and investment banking, small and medium-sized enterprises and retail banking. Raiffeisenbank (Bulgaria) is recognised as a proactive, innovative and quick in delivering top quality products and services.
Raiffeisen Bank International AG (RBI) owns indirectly 100% of Raiffeisenbank (Bulgaria)'s share capital through Raiffeisen CEE Region Holding GmbH.
EBRD Finance Summary
Total Project Cost
The limit will be funded with EBRD's ordinary capital resources of up to EUR 20 million. The remaining EUR 20 million will be sourced from the EBRD-EU Special Fund. The EBRD-EU Special Fund financial resources are being managed by the EBRD pursuant to an operational agreement between the Bank and the Fund Manager of Financial Instruments in Bulgaria signed in October 2018.
The Bank's involvement in the guarantee window of the WWW FW will be additional due to the ability to crowd in commercial banks by providing a guarantee, thus addressing the lack of eligible collateral at the RWOs.
Technical Cooperation and Grant Financing
Company Contact Information
Ivelina Veleva, Product Manager, Project Finance
+359 2 91985881
Business Center EXPO 2000 PHASE III, floor 5, 55 Nikola I. Vaptzarov Blvd., 1407 Sofia, Bulgaria
PSD last updated
04 Aug 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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).
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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 email@example.com to get guidance and more information on IPAM and how to submit a request.