The European Bank for Reconstruction and Development (EBRD) has entered into a new partnership with UniCredit Bulbank, a major commercial bank in Bulgaria, to support the country’s transition to a greener economy. Through the European Union’s InvestEU programme, the EBRD will provide €50 million in guarantees. This guarantee will enable UniCredit Bulbank to generate €100 million in new lending dedicated to environmentally friendly projects.
The new lending will focus on several priority areas, including improving energy efficiency in buildings, supporting renewable energy installations, and promoting sustainable transport initiatives. These areas are central to Bulgaria’s efforts to reduce carbon emissions and modernize its infrastructure. The EBRD guarantee is backed by partial first-loss risk coverage from the European Union under the InvestEU Fund. In addition, further technical support will be available under the InvestEU programme to help financial institutions and project developers implement green investments effectively.
According to Manuela Naessl, the EBRD’s Head of Bulgaria, this agreement marks an important step in strengthening green financing in the country. She noted that working closely with UniCredit Bulbank, one of the EBRD’s key partners, will make it possible to expand sustainable lending and support the development of Bulgaria’s real economy. She emphasized that these efforts are essential for helping the country achieve its national energy and climate goals and advance its broader green transition.
UniCredit Bulbank’s CEO, Tsvetanka Mincheva, explained that the guarantee agreement represents a significant milestone for the bank. She stated that supporting green investments is a strategic priority for UniCredit Bulbank because it creates long-term value for companies, communities, and the environment. The guarantee will allow the bank to extend more financing to businesses and projects that are committed to responsible and innovative investment practices. Mincheva highlighted that the bank aims to lead by example through its focus on green financing, ESG principles, and its commitment to generating a positive impact for society.
This initiative is particularly important for Bulgaria, which remains the most carbon-intensive economy in Europe. By enabling new sustainable investments, the project will help reduce carbon emissions and bring the country closer to its climate obligations. It will also strengthen UniCredit Bulbank’s financial resilience by improving capital management and expanding its ability to offer sustainable financing solutions. The partnership supports the EBRD’s long-term objectives in Bulgaria, which include strengthening the stability of the banking sector and promoting environmentally responsible economic growth.
By helping bridge the investment gap in green projects, the initiative contributes directly to both national and EU-wide climate and energy targets. All projects financed through this scheme will follow strict EBRD criteria for green transition activities, ensuring that they focus on reducing CO₂ emissions and improving energy performance. UniCredit Bulbank is Bulgaria’s third-largest bank and is a subsidiary of UniCredit SpA, an Italian banking group. The InvestEU programme, which supports this initiative, is designed to attract significant private and public investment across the EU.
It plays a key role in supporting sustainable growth, recovery efforts, and major EU priorities such as the European Green Deal and the digital transition. The EBRD is widely recognized for its leadership in climate finance. To date, it has invested nearly €5 billion in 315 projects across Bulgaria. As one of the main partners of the InvestEU programme, the EBRD continues to use portfolio risk-sharing instruments to help financial institutions in EU member countries expand access to sustainable financing.
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