site.btaEBRD Launches Its InvestEU Programme in Bulgaria

The European Bank for Reconstruction and Development (EBRD) Tuesday officially launched its InvestEU programme in Bulgaria, with guarantee agreements for financial institutions. The programme is seen by the Bannk as "a major step forward in the country’s transition to a green and sustainable economy".

InvestEU aims to attract public and private funding in support of sustainable development and growth. The total funding stands at EUR 26.1 billion, which is distributed in the form of guarantee agreements so that financial institutions are able to share the risk involved in financing projects that match the EU priorities in the transition to a green economy and digitization.

EBRD is the second biggest European Commission partner in this programme. Two Bulgarian banks (Postbank and ProCredit Bank Bulgaria) are now partnering with the EBRD with guarantee from InvestEU (EUR 135 million for Postbank and EUR 14 million for ProCredit Bank Bulgaria). 

The event at Sofia's Intercontinental Hotel brought together financial sector leaders, representative of the EU and senior business executives.

More local financial institutions are expected to join the programme in the near future, EBRD said. 

The new facility enables a wide range of borrowers - from private individuals and homeowners’ associations to large corporate clients - to benefit from improved lending terms. Projects financed under the facilities have to meet strict technical standards and contribute to energy savings and CO2 emission reductions.

Speaking at the launch event in Sofia, EBRD Managing Director for Financial Institutions, Francis Malige said that while Bulgaria is making progress in reducing the energy intensity of its economy, the country remains at the bottom of the EU in terms of carbon efficiency. In order to overcome this challenge, financing needs to be attracted. He gave the example that EUR 13 billion worth of funding is needed to renovate the building stock in Bulgaria alone.

The EBRD offers both guarantees and technical assistance funding, which would help the country on the path to achieving a sustainable economy, he added.

The focus of the programme for Bulgaria is on small and medium-sized enterprises, the corporate sector, the construction sector and the expansion of renewable energy, Malage also said.

As a major institutional investor in Bulgaria, the EBRD has invested more than €4.7 billion in more than 300 projects in the country.