The European Bank for Reconstruction and Development (EBRD) and UniCredit Bulbank signed an agreement to provide a portfolio guarantee of EUR 50 million under the EU's InvestEU programme.
The guarantee will allow the bank to provide EUR 100 million in new loans for green investments - energy efficiency and renewable energy in buildings, as well as for sustainable transport projects. It will be supported by partial first-loss risk cover under the InvestEU Fund and additional technical cooperation under the programme.
The project will support Bulgaria in its transition to a green economy, as well as helping UniCredit Bulbank strengthen its sustainability. The financed projects will meet the EBRD's strict criteria for transition to a green economy, focusing on energy efficiency and reducing carbon emissions.
Manuela Naessl, EBRD Head of Bulgaria, commented: “We are pleased to sign this portfolio guarantee agreement with UniCredit Bulbank today. It will allow one of our main partners in the financial sector in Bulgaria to increase the volume of loans to finance sustainable projects in the real economy, and this is of key importance for the country to achieve its energy and climate goals, supporting the green transition”.
Tsvetanka Mintcheva, Chief Executive Officer of UniCredit Bulbank, said: “The signing of the guarantee scheme with the EBRD is an important step in our mission to accelerate the transition to a sustainable economy. For UniCredit Bulbank, the support of green investments is a strategic priority that creates value for business, society and nature. Through this guarantee, we will be able to support even more companies and projects that invest responsibly and innovatively”.
To date, the EBRD has invested nearly EUR 5 billion in 314 projects in Bulgaria.