This initiative marks the EBRD's first application of InvestEU facilities within Bulgaria's financial sector and aims to enhance the bank's capacity to support green investments across various sectors.
The guarantees will enable Postbank to unlock an impressive €260 million in new lending aimed at a diverse range of borrowers, from microbusinesses to large corporations. This strategic move is designed to bolster financing for green projects that are essential for Bulgaria's economic transition towards sustainability.
Details of the Guarantee Facilities
- The agreement includes one uncapped and one capped unfunded portfolio guarantee.
- These facilities provide first loss risk cover and technical assistance under the InvestEU Programme.
- Postbank is expected to allocate at least 125% of the EBRD guarantee amount towards eligible green projects, thereby enhancing its contribution to the green economy transition.
Statements from Key Officials
Manuela Naessl, EBRD Head of Bulgaria, emphasized the importance of this partnership by stating, “These guarantee facilities will support Bulgaria’s sustainable growth and help Postbank increase its financing for green projects by SMEs and larger corporate clients.” She highlighted that this initiative would contribute significantly to bridging the investment gap necessary for achieving Bulgaria’s energy and climate targets.
Petia Dimitrova, CEO and Chairperson of Postbank’s Management Board, expressed her enthusiasm about the collaboration: “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.”
Impact on Green Investments
The projects financed through these guarantees will adhere to stringent eligibility criteria set by the EBRD, focusing on energy savings and CO2 emission reductions. This aligns with broader EU objectives such as the European Green Deal and supports Bulgaria's national priorities for a sustainable economy.
Postbank's Role in the Bulgarian Financial Landscape
Postbank stands as the fourth largest bank in Bulgaria by assets, with a robust branch network and a diverse client base that includes individuals, companies, and institutions. As part of the Eurobank Group, which boasts total assets of €99.6 billion and employs approximately 12,880 people, Postbank is well-positioned to leverage this partnership for significant impact in the financial sector.
The InvestEU Programme: A Catalyst for Growth
The InvestEU programme serves as a vital mechanism for long-term funding within the EU, aiming to mobilize substantial private investments that align with EU policy priorities. The EBRD has been a principal partner in deploying portfolio risk-sharing instruments across EU member states, having invested nearly €4.6 billion in 296 projects within Bulgaria alone.
This collaboration between EBRD and Postbank not only signifies a pivotal step towards enhancing green financing in Bulgaria but also underscores the commitment of both institutions to foster sustainable economic growth. As Europe continues its push towards climate resilience and sustainability, initiatives like this will play a crucial role in achieving these ambitious goals.
