By Dilara Sarı
The European Bank for Reconstruction and Development (EBRD) is providing a €60 million(US$65.7million) loan to Bulgaria’s ProCredit Bank to finance investments that mitigate the impacts of climate change and promote environmental resilience.
The proceeds of the loan will be allocated for on-lending to green projects in Bulgaria and Greece, including, among others, projects on energy efficiency, renewable energy and climate resilience measures.
The loan will expand ProCredit Bank Bulgaria’s green lending activities, and will accelerate both countries’ transition towards greener, more sustainable economies.
Procredit Bank Bulgaria has been a pioneer in green financing in Bulgaria, committed to activities aimed at protecting the environment, improving energy efficiency and reducing the ecological footprint. Established in 2001 by an alliance of international development-oriented investors, ProCredit Bank Bulgaria is now solely owned by ProCredit Holding, based in Frankfurt am Main (Germany), and focuses its support on small and medium-sized enterprises (SMEs).
EBRD Director for European Union Banks and Structured Finance, has welcomed the partnership, Melis Ekmen Tabojer saying: “We are pleased to be building on our successful track record with ProCredit Bank. Over the last few years, we have witnessed the devastating impacts of the climate crisis in Greece and Bulgaria, and we are confident that this loan, which prioritises green projects, will contribute to mitigating that impact, and accelerate the journey towards a sustainable future for both countries.”
“Our strategic partnership with the EBRD allows us to provide continuous, regular support to SMEs with appropriate financing solutions. The new loan agreement, together with our in-house expertise and experience, will help Bulgarian and Greek companies become more competitive and innovative in the context of today’s rapid-paced green transition,” said Member of the Management Board and Executive Director of ProCredit Bank Rumyana Todorova.
The EBRD is a leading institutional investor in Bulgaria, with a cumulative investment of €4.5 billion in more than 290 projects in the country. The Bank’s focus in the country remains on enhancing private-sector competitiveness, strengthening the financial sector and narrowing the infrastructure gap.
