EIB Group to back 291 mln euro in Allianz Bank Bulgaria SME loans

The agreement will provide capital relief for Allianz Bank Bulgaria, freeing up credit capacity to be used for local companies and contributing to the country's transition to climate neutrality, the EIB Group said at a press conference in Sofia.

The financial support from the EIB Group is set to create more favourable conditions for SMEs, with some 64 million euro earmarked for climate change and environmental sustainability projects.

The European Investment Fund (EIF) will ensure protection for a mezzanine tranche of 29 million euro, counter-guaranteed by the EIB, and a senior tranche of over 175 million euro out of a portfolio of consumer credits, loans and leasing contracts for SMEs with liabilities totalling some 207 million euro.

"The partnership between Allianz Bank Bulgaria and the EIB is an important step towards expanding our opportunities for financing SMEs in Bulgaria so that they can develop in a sustainable and efficient way. This represents an important step not only for our customers but also for the overall economic development of the country, including the creation of new jobs," Allianz Bank Bulgaria CEO Georgi Zamanov said.

The EIB Group consists of the European Investment Bank and the European Investment Fund. In 2023, the group provided financial support of 1.11 billion euro for projects in Bulgaria, compared to 494 million in 2022.

($ = 0.9211 euro)