- The new terminal will provide a modern system for grain storage and transportation. The project will optimise grain and bulk port operations in Northern Bulgaria.
- This agreement was made possible with the support of the InvestEU programme, which aims to trigger more than €372 billion in additional investment over the period 2021-27.
- The loan agreement affirms EIB commitment to support food security and sustainable regional development
The European Investment Bank (EIB) signed an agreement with Logistic Centre Varna EAD, part of Buildcom Group, for a €50 million loan to co-finance a new grain terminal at the Black Sea port of Varna. The EIB financing is backed by the InvestEU programme. The project will support food safety, promote less carbon intensive maritime transport, and boost economic growth in the region by providing improved access to the export market for local agricultural producers.
Through the EIB support, Buildcom Group, which is Bulgaria’s largest privately-held sunflower oil producer and leading grain trader, will integrate the logistics side of its business and optimise grain and bulk port operations in the Varna area. The new grain terminal is expected to become operational in the second quarter of 2026 and consists of a new quay, a silo and other storage facilities as well as a new railway and road access.
Executive Vice-President for an Economy that Works for People, Valdis Dombrovskis, said: “Co-financing a new grain terminal at the Bulgarian port of Varna will boost the trade and export capacity of one of Europe’s less developed regions. It will enable local producers to access export markets, facilitate trade and investment, and create jobs, while serving wider EU goals to make supply chains stronger and more diversified in support of long-term food security. This shows the added value of EIB projects and InvestEU for driving regional private sector development and sustainable economic growth.”
“The EIB is proud to strengthen its partnership with the Buildcom Group. The financing affirms our commitment to support Bulgarian business in modernising and expanding their operations in a sustainable way, contributing to the country’s regional and economic development and increasing its competitiveness” said European Investment Bank Vice President Lilyana Pavlova.
Julian Stefanov, chief executive officer of Logistic Centre Varna EAD, said: “With its modern facilities, the new terminal will provide local grain producers with an efficient and price-competitive access to the liquid international markets. It will be an important gateway for Bulgarian grain exports and will increase the country’s competitiveness in maritime transportation.”
This is the first EIB transaction in Bulgaria in which a private company is benefiting from the support of the InvestEU guarantee. The InvestEU programme mobilises investment for EU policy priorities like the green transition, including through support for sustainable infrastructure.
The investment will be focused on alleviating the need for an efficient and modern grain port terminal in a less developed region of the EU in terms of per-capita-GDP, thus underlining the EIB’s commitment to equitable growth.
The project will have a positive impact on the environment, supporting a modal shift from road to less carbon intensive rail and maritime transport, reducing greenhouse gas emissions in transporting agricultural commodities to the regions and destinations in most need to mitigate food insecurity.
Background information
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.
The European Investment Bank (EIB) is the European Union’s long-term financing institution, owned by its Member States. We finance sound investments that contribute to EU policy goals, including social and territorial cohesion, and the just transition to climate neutrality. We support projects in infrastructure, innovation, climate and environment, small and medium-sized enterprises and mid-caps.
Buildcom Group is a leading privately-held Bulgarian business group operating in the agriculture sector. It is one of the largest Bulgarian traders of grains and fertilisers with over 2 million tonnes of grains and oilseeds purchased annually and holding about 20% market share of Bulgarian grain exports. The Group operates three sunflower oil producing plants and is the leading sunflower oil and sunflower meal producer in Bulgaria with more than 50% market share of Bulgarian sunflower oil production. Its subsidiary Logistic Centre Varna EAD will develop and operate the new grain port terminal.
