EBRD FINANCES BULGARIA'S SMES WITH EUR 27,5 M

EBRD FINANCES BULGARIA'S SMES WITH EUR 27,5 M

The European Bank for Reconstruction and Development (EBRD) is boosting the availability of financing in the Bulgarian real economy with two credit lines worth a total of EUR 27,5 M, the bank announced.

They have been offered to Allianz Bank Bulgaria (ABB) for on-lending to small and medium enterprises (SMEs) and for financing energy efficiency and renewable energy projects.

АBB, majority-owned by Germany’s Allianz Group, is a universal bank offering a full range of banking services through a network of more than 110 branches and representative offices in the country.

The SME credit line, worth EUR 20 M, will be used to finance investments and working capital of small and medium-sized businesses operating in Bulgaria.

The proceeds of the Energy Efficiency line in the amount of EUR 7,5 M will finance energy efficiency and renewable energy projects implemented by Bulgarian businesses with the view to reduce their energy intensity and improve their competitiveness.

The facility, part of the EBRD’s Energy Efficiency and Renewable Energy Credit Line Framework (EERECL) for Bulgaria, is complemented by grant funding from Kozloduy International Decommissioning Support Fund (KIDSF), which will be used for technical assistance to support both types of projects and for incentives for both the banks and businesses involved.

“The funds offered to Allianz Bank Bulgaria will facilitate the access of local companies to the much needed financing and will help them improve their energy efficiency," said Peter Reiniger, EBRD Managing Director for Central and South Eastern Europe.

“ABB welcomes the opportunity to finance new clients’ projects even nowadays when markets are relatively cautious. Supporting energy efficiency being a key goal for EU member states will also help ABB to meet the specific needs of its corporate clients," said Dorcho Ilchev, Executive Director of ABB.

Since the beginning of the EBRD operations in Bulgaria, the Bank has committed EUR 2 B in more than 120 projects in key sectors of the country’s economy, mobilising additional investment worth more than EUR 7 B.