EIB, United Bulgarian Bank in 150 mln euro guarantee deal to back mid-caps

As part of a 75 million euro risk-sharing agreement, the EIB will guarantee 50% of new loans granted by UBB to companies with up to 3,000 employees over the next two years, the lender said at a press conference in Sofia.

The deal will support sustainable investments, helping medium-sized enterprises expand and implement projects that boost the economy and employment.

"We are ready to support the efforts of companies in the segment to increase their efficiency and competitiveness, to improve business processes and their transformation towards a more sustainable development model," UBB's executive director of corporate banking and markets, Dobromir Dobrev, said.

The EIB Group, consisting of the EIB and the European Investment Fund (EIF), signed on Wednesday an agreement with another lender, Allianz Bank Bulgaria, unlocking 291 million euro in financing for small and medium-sized enterprises and mid-cap companies over three years.

In 2023, the EIB Group provided 1.11 billion euro in support of for projects in Bulgaria, compared to 494 million euro in 2022.

($ = 0.9211 euro)