Four Banks Bid to Participate in Fund of Funds' Capped Portfolio Guarantee Scheme

NW 17:47:31 14-01-2020

Four Banks Bid to Participate
in Fund of Funds'
Capped Portfolio Guarantee Scheme

Sofia, January 14 (BTA) - DSK Bank, United Bulgarian Bank, First Investment Bank and Eurobank Bulgaria have applied as financial intermediaries under a capped portfolio scheme for energy efficiency and innovations with the Fund Manager of Financial Instruments (Fund of Funds), the Fund said on Tuesday. The capped portfolio guarantee is an instrument funded through Operational Programme Innovations and Competitiveness 2014-2020 and co-financed by the European Structural and Investment Funds.

The loans will target both small and medium-sized enterprises and large companies in almost all sectors of the economy, with an emphasis on two strategic areas - energy efficiency and innovations. Approximately 60 per cent of the funds will be available for energy efficiency loans and slightly more than 40 per cent for innovations.

The Fund of Funds offers up to 80 per cent coverage of the risk associated with each loan against the lender undertaking to offer financing at preferential interest rates and against lower requirements for the securities to be provided.

Under the first thematic area, assistance will be provided to enterprises that wish to implement important projects to improve their energy efficiency as ascertained by an energy audit. Grant assistance for energy audits will be available to the first 161 micro, small and medium-sized enterprises that join the scheme. The loans in this thematic area could reach and exceed a total of 400 million leva.

The remainder of the available funding will be disbursed for projects related to the development and implementation of innovations by businesses. Projects may be in ICT, bio-, nano- and clean technologies, mechatronics, the creative industries, etc. Available financing may reach approximately 300 million leva. RY/PP