- The European Investment Fund signs a guarantee agreement that unlocks new bank financing for sustainable growth and green transition of Bulgarian businesses.
- A new financial instrument under Bulgaria’s Recovery and Resilience Plan supports investments for climate action.
ProCredit Bank (Bulgaria) EAD and the European Investment Fund (EIF) signed a guarantee agreement that will provide bank financing to support the sustainable growth and competitiveness of small and medium-sized enterprises and contribute to the green transformation of the Bulgarian economy.
The issuance of the portfolio guarantees is backed by the InvestEU Member State Compartment for Bulgaria and is consistent with Bulgaria’s Recovery and Resilience Plan. The EIF guarantees will free up ProCredit Bank's credit resources and enable it to provide more flexible and favourable financing to enterprises.
The Republic of Bulgaria, represented by the Ministry of Innovation and Growth, entrusted the EIF as an implementing partner for the two portfolio guarantee instruments in its Recovery and Resilience Plan. The guarantees will be financed by the Recovery and Sustainability Facility. The instruments are an important means of increasing the competitiveness of Bulgarian enterprises, stimulating economic growth and promoting green transition.
Milena Stoycheva, Minister of Innovation and Growth, said: “The partnership with the European Investment Fund underlines our commitment to enhancing the economic landscape of Bulgaria. Since the inception of the JEREMIE mandate in 2009, this collaboration has been a cornerstone in transforming our economy. We see the financial instruments under the Recovery and Resilience Plan as the next chapter in this success story. Through these guarantees, we are not only fostering the adoption of climate action investments but also strengthening the resilience and competitiveness of our small and medium-sized enterprises. These efforts signify a pivotal step towards a sustainable and prosperous future for Bulgaria.”
Under the SME Competitiveness Guarantee ProCredit Bank (Bulgaria) EAD will provide loans on preferential terms to small and medium-sized enterprises to help strengthen their resilience and increase their productivity amid economic uncertainty. The Sustainability Guarantee will target investments in climate action, energy efficiency and renewable energy by small and medium-sized enterprises and housing associations in support of the transition to the green economy.
Vincent Van Steensel, Director of Finance Programs at the EIF, said: “Thanks to the excellent cooperation with the Bulgarian authorities and banks, which are our partners in the country, the EIF was able to kick-start the actual financing of these guarantee instruments in record time. These agreements will allow small and medium-sized enterprises to expand and modernise their operations and contribute to a greener future.”
Kameliya Mineva, Executive Director and Member of the Management Board of ProCredit Bank Bulgaria EAD, stated that “ProCredit Bank has a long-standing effective partnership with the small and medium-sized enterprises in Bulgaria built on a high level of expertise and excellent financing terms. Thanks to this agreement with the EIF, we will be able to finance green investments in line with ProCredit Bank's strategic priority – to support our clients towards green and sustainable transformation, as well as to encourage them to reach their business potential in both domestic and international markets. As we have repeatedly stated – there is financing for the Bulgarian businesses. The important thing is that we all leverage such initiatives to raise awareness and increase engagement of entrepreneurs on the path to a more sustainable and competitive economy.
Background Information
The EIF is part of the EIB Group together with the European Investment Bank. It supports Europe’s small businesses by improving their access to finance through a wide range of selected financial intermediaries such as banks, guarantee and leasing companies, micro-credit providers and private equity funds. The EIF designs and offers equity and debt financing instruments fostering EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.
About the InvestEU Member State Compartment
The InvestEU Member State Compartment enables the Member States to contribute part of their shared management funds, resources from the Recovery and Resilience Facility, and national resources to the InvestEU Fund by setting up a dedicated Member State Compartment. With this voluntary contribution, Member States can leverage on the InvestEU guarantee to support specific national priorities. Under the Member State Compartment, loans, guarantees or equity investments can be offered as a complement to other public and private investments.
ProCredit Bank Bulgaria (PCBB) is a full-service bank focused on small and medium-sized enterprises working mainly in the production, trade and agricultural sectors. The business lending of PCBB is based both on an understanding of each client’s situation and on sound financial analysis which allows the Bank to build long-term partnerships with our clients based on mutual trust. PCBB is wholly owned by ProCredit Holding AG & Co. KGaA (PCH), based in Frankfurt am Main, Germany – the parent company of the ProCredit banking group. In addition to Bulgaria, ProCredit provides financing in Greece, Serbia, Ukraine, Kosovo, North Macedonia, Ecuador, Georgia, Romania, Bosnia and Herzegovina, Albania, Moldova and Germany.