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Signature(s)

Amount
€ 75,000,000
Countries
Sector(s)
Bulgaria : € 75,000,000
Credit lines : € 75,000,000
Signature date(s)
22/12/2023 : € 75,000,000
Link to source

Summary sheet

Release date
25 October 2023
Status
Reference
Signed | 22/12/2023
20220086
Project name
Promoter - financial intermediary
UNITED BULGARIAN BANK RISK SHARING
UNITED BULGARIAN BANK AD
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 75 million
EUR 210 million
Location
Sector(s)
Description
Objectives

The project consists in a Linked Risk-Sharing Operation to support Bulgarian small and medium sized enterprises (SMEs), mid-caps and large corporates.

The aim is to enhance access to finance to the final beneficiaries operating in EIB's eligible sectors such as innovation and environment.

Additionality and Impact

This Linked risk sharing operation is designed to provide support to mid-caps in order to foster their access to liquidity and contribute to the long-term economic growth in Bulgaria. The proposed operation is fully in line with the EU and the Bank's strategic objective to support uninterrupted access to finance for Mid-Caps through the provision of a fully delegated guarantee instrument. The operation addresses the underlying market failure in access to finance faced by Final Beneficiaries due to information asymmetries and credit considerations on the side of the Financial Intermediaries. Given the economic uncertainty exacerbated by supply chain constraints, inflation, rising interest rates and energy security constraints, the proposed risk sharing operation may alleviate some of the pressures faced by the real economy. The EIB contribution enables the United Bulgarian Bank to reach beneficiaries that are not covered by any of the existing guarantee schemes currently available to the Financial Intermediary. The EIB contribution rests on assuming credit risks and thereby allowing the Financial Intermediary to engage into transactions that it would not have engaged in without the EIB's intervention due to capital or credit risk related limitations. The final beneficiaries will benefit from the above additional lending made available by United Bulgarian Bank at typically beneficial terms, in the form of reduced interest rates, longer maturities and/or lower collateral requirements.

Environmental aspects
Procurement

Final beneficiaries will be requested to comply with applicable national and EU environment and procurement legislation, as appropriate.

Final beneficiaries will be requested to comply with applicable national and EU environment and procurement legislation, as appropriate.

Milestone
Under appraisal
Approved
Signed
14 December 2023
22 December 2023
Related projects
Link to source
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Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

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Enquiries and comments concerning the EIB’s involvement in a project or the financing facilities, activities, organisation and objectives of the EIB, can be sent to the EIB Infodesk.
Alternatively, the EIB can be contacted through its external offices.
Queries regarding details of a specific project, in particular when it is under appraisal by the EIB, should preferably be addressed directly to project promoters.

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Any complaint regarding alleged maladministration can be lodged via the EIB Complaints Mechanism. The European Ombudsman acts as an independent external accountability mechanism of the EIB.

Zero tolerance against fraud and corruption

The EIB has a zero tolerance policy on fraud or corruption. To report allegations of fraud and corruption relating to EIB-financed projects, please contact the Fraud and Investigation division. All complaints will be treated as strictly confidential and handled in line with the EIB investigation procedures and the Anti-Fraud Policy.

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