21.05.2021

BDB HAS STARTED WORK ON STRUCTURING TWO NEW WARRANTY PRODUCTS UNDER INVESTEU

The Bulgarian Development Bank has started work on structuring two new guarantee products under the European program InvestEU, the bank announced.

The total resource that can be mobilized in support of Bulgarian companies and public companies is up to BGN 1.3 billion.

The funds will support projects to create sustainable infrastructure in the field of environment and strengthen the competitiveness of small and medium enterprises, the Development Bank said.

One of the instruments is aimed at investing in the implementation of water and waste management policies and is in line with the circular economy.

Part of the tool will invest in the construction of infrastructure for charging electric vehicles. The coverage of financial instruments with a guarantee is expected to reach BGN 300 million.

The second instrument focuses on another specific objective of the InvestEU program - improving access to finance for small and medium-sized enterprises, including mid-caps, under more favorable market conditions.

The aim is to improve the competitiveness of enterprises, including by increasing their capacity for digitization and innovation. The coverage of the product is expected to reach BGN 978 million.

The consultations are aimed at potential financial intermediaries such as commercial banks, leasing companies and non-bank financial institutions, as well as at interested borrowers. The aim of the study is to take into account market demand and to help structure the appropriate tools.

For InvestEU

The InvestEU program will be implemented for the period 2021-2027 as the EU's main instrument for investing in economic recovery, environmental progress and employment in Europe. It is one of the tools to support growth after the Kovid crisis and to achieve the EU's goals of building a green, digital and sustainable European economy.

More information about InvestEU and market research can be found here.