Bulgaria: Companies to get fresh financing under €75 million EIB guarantee for Postbank

• EIB extends guarantee to Bulgaria-based Postbank to expand financing for mid-sized companies in country
• Risk-sharing accord to open way for €150 million in fresh lending
• Deal to protect jobs, boost investments and bolster economy 

The European Investment Bank (EIB) is providing Bulgaria-based Postbank with a €75 million guarantee to expand financing for middle-sized companies in the country and strengthen the domestic economy. Postbank, part of the Eurobank Group, will use the EIB backing to unlock as much as €150 million in loans for Bulgarian businesses.

Under the risk-sharing arrangement, the EIB guarantee is for a portfolio of investment and working capital loans to Bulgarian companies with up to 3,000 employees. It will enable Postbank to lend on preferential terms including lower interest rates or collateral requirements.

“Providing affordable finance to businesses is at the heart of our mandate,” said EIB Vice-President Kyriacos Kakouris. “We help Bulgarian companies expand their operations and investments in innovative products and digital technologies. This risk-protection tool will boost the growth and competitiveness of the Bulgarian economy as well as protect and create jobs in times of global economic uncertainty and international trade challenges.”

Postbank will have two years to build the portfolio, whose maximum single financing amount will be €30 million. The aim is to contribute to sustainable investment and enable companies to expand their operations and pursue new projects.

“This operation with the EIB is of strategic importance,” said Postbank Chief Executive Officer and Management Board Chair Petia Dimitrova. “It is aimed at supporting a business segment that is not addressed by other available guaranteed instruments, with the goal of enhancing competitiveness and stimulating innovation. With this step, Postbank reaffirms its commitment to its customers as a trusted partner, providing them with opportunities for growth in a stable and sustainable economy.”

The EIB Group, which also includes the European Investment Fund (EIF), has supported more than 30,000 companies since the start of its operations in Bulgaria in 1992. In 2024 alone, the EIB Group directly or indirectly supported over 4,000 small and medium-sized enterprises (SMEs) and Mid-Caps in the country, helping safeguard around 111,000 jobs. 

The new agreement builds on earlier operations between the EIB Group and Postbank over a number of years. Since 2009, Postbank has signed a loan agreement with the EIB, as well as seven risk-sharing agreements and one funding accord with the EIF for a total of more than €1.5 billion.

Background information

About the EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, the EIB finances investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.  The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security. 

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Since the start of its operations in Bulgaria, the EIB Group has invested over €10 billion in the country, financing projects that reduce regional disparities, strengthen economic competitiveness and boost growth. In 2024 alone, the EIB Group funding volume in Bulgaria reached €388 million.     

About Postbank

Postbank is the fourth-biggest bank in Bulgaria in terms of assets, having a broad branch network across the country and a considerable client base of individuals, companies and institutions.

In June 2022, Bulgarian Credit Rating Agency (BCRA) confirmed Postbank’s BBB long-term rating, with stable outlook. In September 2024 Postbank was awarded a Baa1 long-term deposit rating with a stable outlook by the international rating agency Moody's Investors Service.

Postbank is a member of the Eurobank Group. The Eurobank Group, consisting of Eurobank S.A. (Eurobank) and its subsidiaries, is a strong banking group with total assets of €99.6 billion and 12,880 employees. Eurobank Ergasias Services and Holdings S.A. (Eurobank Holdings) is the ultimate parent company of Eurobank Group. In Greece, Eurobank operations encompass a retail banking network, dedicated business centres, a Private Banking network and a dynamic digital presence.