REECL 3 - United Bulgarian Bank

Location:

Bulgaria

Project number:

48204

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

25 May 2016

Status:

Disbursing

PSD disclosed:

17 Mar 2016

Translated version of this PSD: Bulgarian

Project Description

The EBRD is considering to provide a EUR 5 million loan and technical cooperation to United  Bulgarian Bank ("UBB") under the second extension of the Residential Energy Efficiency Credit Line Framework ("REECL 3"). Proceeds of the loan will be used for on-lending on market terms to individuals, associations of apartment owners and privately-owned service providers for financing of energy efficiency projects in the residential  sector.

Project Objectives

The REECL 3 loan to UBB aims at continuing the momentum gained by the REECL Framework to date and address the need for further energy efficiency improvements in the residential sector in Bulgaria.

Transition Impact

REECL 3 will contribute to transition by: (i) demonstrating best-available-technology energy efficiency products and comprehensive refurbishment in the residential sector, expanding and enhancing competition in the market for such products and services; (ii) developing financial intermediation with housing associations and service provider companies; (iii) building capacity within participating financial institutions in the field of service provider companies financing and within service providers on the structuring of energy efficiency projects; and (iv) assisting Bulgaria in its efforts to decrease CO2 emissions.

Client Information

UNITED BULGARIAN BANK AD

Established in 1992 through the merger of 22 Bulgarian regional commercial banks, United Bulgarian Bank is the first consolidation project in the Bulgarian banking sector. It was also the first large stateowned bank in the country to be privatised, back in 1997.

At present UBB is one of the largest banks in Bulgaria, providing universal banking services through its wide branch network of close to 200 units. It is part of the financial group of the National Bank of Greece, which has been successfully operating for more than 160 years.

EBRD Finance Summary

EUR 5,000,000.00

Total Project Cost

EUR 5,000,000.00

Environmental and Social Summary

Categorised FI. UBB will be required to continue to comply with PRs 2, 4 and 9. In line with PR9, the bank will need to adhere to the EBRD's Environmental and Social Exclusion List. Eligible subprojects will be required to comply with the EBRD's energy and/or resource efficiency eligibility criteria. UBB will be required to submit annual environmental and social reports to the EBRD, including reporting on sub-projects.

Technical Cooperation

UBB will benefit from the grant funding available under the REECL 3 framework, amounting to EUR 4.4 million in total and financed by the Kozloduy International Decommissioning Support Fund, to provide (i) investment incentive payments to sub-borrowers and (ii) a comprehensive technical cooperation package.

Company Contact Information

Zornitsa Raichina
zagororva_z@ubb.bg
+359 2 8112480
+359 2 9880822
www.ubb.bg
5 St. Sofia Str. Sofia 1040, Bulgaria

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