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EBRD signs its first InvestEU facilities in Bulgaria’s financial sector with Postbank
EBRD will share risk on Postbank lending, allowing the Bulgarian bank to lend more
Portfolio guarantees will unlock €260 million of Postbank lending
The?European Bank for Reconstruction and Development?(EBRD) is partnering with Eurobank Bulgaria AD (Postbank) to provide guarantees of €135 million in total under the European Union’s (EU’s) InvestEU programme. The guarantees will support Postbank to lend more, unlocking €260 million of new lending to a wide range of borrowers, from microbusinesses to large companies, for green investments across industry sectors.
The facilities - one uncapped and one capped unfunded portfolio guarantee - benefit from first loss risk cover and technical assistance provided under the InvestEU Programme.
“These guarantee facilities will support Bulgaria’s sustainable growth and help Postbank increase its financing for green projects by SMEs and larger corporate clients. In this way the EBRD will contribute to Bulgaria’s green economic transition and, together with Postbank, help bridge the investment gap towards reaching Bulgaria’s and the EU’s energy and climate targets,” said EBRD Head of Bulgaria Manuela Naessl.
“We are extremely happy to announce this partnership. The cooperation is of strategic importance to us and another significant step in establishing Postbank as a leader in the financial services market in our country. The agreement encourages support for green projects accelerating the sustainable transition of the economy. Postbank further strengthens its ESG strategic vision and proves its commitment to support customers in moving towards more sustainable business practices,” said Petia Dimitrova, Chief Executive Officer and Chairperson of Postbank’s Management Board.
Projects financed under the facilities will have to meet the EBRD’s demanding eligibility criteria for green economy transition and strict technical standards and will contribute to energy savings and CO2 emission reductions.
Postbank is the fourth biggest bank in Bulgaria in terms of assets, with a broad branch network across the country and a considerable client base of individuals, companies and institutions. Postbank is a member of the Eurobank Group. The Eurobank Group, consisting of Eurobank S.A. (Eurobank) and its subsidiaries, is a strong banking group with total assets of €99.6 billion and 12,880 employees.
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 and growth. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition.
The EBRD, a leader in climate finance, has to date invested nearly €4.6 billion in 296 projects in Bulgaria. It is one of the main partners of the InvestEU Programme and deploys portfolio risk sharing instruments for financial intermediaries across the EU countries where it operates. |
