Release date: 15 July 2022
Promoter – Financial Intermediary
BULGARIAN DEVELOPMENT BANK EADLocation
Description
A dedicated EIB loan to finance eligible investments by small and medium-sized enterprises (SMEs) and mid-caps in Bulgaria with a specific focus on Climate Action and Environmental Sustainability.
Additionality and Impact
The operation will provide funding to the promoter, Bulgarian Development Bank, with the aim of facilitating access to finance to Bulgarian SMEs (for at least 70%) and Mid-Caps (up to 30%), which is still at suboptimal levels. The operation foresees that at least 20% of the loans will be dedicated to Climate Action and Environmental Sustainability ("CA&ES") projects, mainly supporting energy efficiency and renewable energy investments. This operation is a further step in the implementation of the CA&ES via financial intermediaries, targeting a specific sub-segment of SME/Mid-Cap lending. The Financial Intermediary has established a clear strategic commitment to support the transition to a sustainable, green and circular economy with dedicated financial instruments. The loan is expected to offer a strong contribution to maintaining employment. The EIB is providing attractive financing conditions in terms of pricing, longer maturities, grace periods and longer availability periods, which are not available on the market. The Bank's cooperation and engagement with the financial intermediary aids in facilitating the transition to greener financing.
Objectives
Financing of small/medium projects carried out by small and medium-sized enterprises in Bulgaria. This operation will also contribute to mitigating the negative economic effects of the pandemic and the energy crisis and at least 20% of the financed sub-projects will be dedicated to tackling climate change.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 175 million
Total cost (Approximate amount)
not applicable
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 11/07/2023
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).