Release date: 3 March 2021
Promoter – Financial Intermediary
UNICREDIT BULBANK ADLocation
Description
Linked risk sharing operation under the European Guarantee Fund (EGF) related to Bulgarian small and medium-sized enterprises (SME) & mid-cap and large corporate portfolio.
Additionality and Impact
The operation represents the first EIB's unfunded, uncapped guarantee under the Pan-European Guarantee Fund (EGF) in Bulgaria and the first EIB guarantee to UniCredit Bulbank AD. The project aims to support the access to finance of Bulgarian SMEs, Midcaps and large corporates, experiencing the negative impact of the Covid-19 pandemic, in sectors that are in line with EIB's long-term mission (Innovation, Climate Action and support for SMEs and Midcaps). EGF-backed guarantee will help provide loss protection for newly originated eligible loans to larger Midcaps and large corporates. The EIB contribution consists in introducing a product with innovative features for the counterpart as the guarantee enables UniCredit to reach beneficiaries that are not covered by any of the existing guarantee schemes currently available in Bulgaria. The financial contribution is based on a fixed guarantee rate for different underlying maturities of the eligible loans. MidCaps and Large Corporates will benefit from the above additional lending made available by UniCredit Bank at typically beneficial terms, in the form of reduced interest rates, longer maturities and/or lower collateral requirements. SMEs will benefit from improved access to finance, to be achieved via the built-up of a complementary SME loan portfolio by UniCredit Bulbank.
Objectives
Linked risk sharing operation under the European Guarantee Fund (EGF) related to Bulgarian SME & mid-cap and large corporate portfolio in sectors that are in line with the EIB's long-term mission (innovation, environment and indirect SME support) affected by the COVID-19 pandemic.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 60 million
Total cost (Approximate amount)
EUR 196 million
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU environment and procurement legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU environment and procurement legislation, as appropriate.
Status
Signed - 15/10/2021
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).