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RLF - ProCredit Bank Bulgaria Senior Preferred Loan



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

21 Sep 2022



PSD disclosed:

30 Aug 2022

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Provision of a EUR 60 million senior preferred unsecured loan to ProCredit Bank (Bulgaria) EAD ("PCBB"). The loan will have two equal tranches of EUR 30 million each.

Project Objectives

The proposed Project aims to support the resilience of PCBB, a recognised SME-dedicated bank in Bulgaria, in a challenging market environment and to finance businesses in Bulgaria directly or indirectly affected by economic consequences of the war on Ukraine, with the ultimate goal of preserving livelihoods in the country.

Transition Impact

ETI score: 65

The expected transition impact of the Project stems from its contribution to the Resilient and Inclusive transition qualities. The operation will support the Resilient transition quality by helping PCBB in meeting its respective regulatory requirements towards loss absorbing funding base and also support the bank's resilience to market and regulatory shocks, thereby increasing its long-term sustainability. The transaction will contribute to the Inclusive quality by facilitating the financing of businesses in Bulgaria, particularly MSMEs, which have been directly and indirectly impacted by the ongoing war and its spill-over effects on the regional economies.

Client Information


PCBB was established in 2001 and is part of the international ProCredit Holding group, a network of SME banks. With total assets of EUR 1.8 billion as at end-June 2022, the bank ranks 10th among 25 banks operating in the Bulgarian market. PCBB is rated by BBB-/Stable by Fitch (July 2022).

EBRD Finance Summary

EUR 60,000,000.00

Bail-in-able bilateral senior preferred unsecured loan.

Total Project Cost

EUR 130,000,000.00

Total bail-in-able funding for 2022-2024 to be raised by PCBB.


Financing structure and risk mitigation:

Given the insufficient capacity and low liquidity of the local capital market, the project will be closing the funding gap and ensuring PCBB raises enough bail-in-able funding to meet its regulatory requirements.

Standard setting:

  1. Portion of the loan proceeds will be used to finance green investments in line with EBRD Green Economy Transition approach, thus supporting the bank's efforts in promoting and financing projects with clear environmental benefits beyond the normal course of banking business and enhancing awareness and deployment of funds in this area.
  2. As part of the project, PBCC commits to identify gender gaps in the workplace and take appropriate measures to improve overall staff engagement.

Environmental and Social Summary

Categorised FI (ESP 2019). PCBB is an existing client and will be required in relation to this project to continue to comply with PRs 2, 4 & 9, adhere to the EBRD's E&S requirements and submit AESRs to the Bank. The proposed transaction will require PCBB to apply the E&S Exclusion List, which was amended for the 2019 policy, and also apply the Referral List as per PR9.

Technical Cooperation and Grant Financing


Company Contact Information

ProCredit Bank (Bulgaria) EAD Head Office
(+ 359 2) 81 35 808 /809
(+ 359 2) 81 35 109
26 Todor Aleksandrov Blvd., Sofia 1303

Implementation summary

PSD last updated

30 Aug 2022

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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