site.btaPostbank Signs Partnership Agreement with European Bank for Reconstruction and Development

Postbank and the European Bank for Reconstruction and Development (EBRD) have signed a partnership agreement to provide guarantees worth a total of EUR 135 million under the European Union's InvestEU programme, Postbank said Wednesday.

The guarantees will increase Postbank's potential to lend more, unlocking EUR 260 million of new financing opportunities targeting a wide range of borrowers, from micro-businesses to companies in the corporate segment. The focus of the programme is on the implementation of green investment projects in various industries and sectors.

The InvestEU guarantee agreement supports the financing provided through additional coverage of future loan products, with a portfolio-level guarantee with no loss cap and one with a loss cap. In addition, the EBRD also provides technical assistance to the verification of the projects under consideration on the compatibility of the financing with the terms of the guarantee provided.

"The agreement promotes support for Bulgarian small and medium-sized enterprises (SMEs) to improve competitiveness, foster innovation and accelerate the green and sustainable transition of the economy," said Petya Dimitrova, CEO and Postbank Board Chair.

"These guarantee mechanisms will support Bulgaria's sustainable growth and help Postbank increase its financing for green projects from SMEs and larger corporate clients. In doing so, the EBRD will contribute to Bulgaria's green economic transition and, together with Postbank, help to bridge the investment gap to meet Bulgaria's and the EU's energy and climate goals," said EBRD Country Manager for Bulgaria Manuela Naessl.

Projects financed under the mechanisms will have to meet the EBRD's demanding eligibility criteria for the transition to a green economy and strict technical standards, and will contribute to energy savings and carbon dioxide emission reductions, the press release reads.