InvestEU GCPG - Eurobank Bulgaria

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A capped unfunded portfolio guarantee to be provided by the EBRD as an InvestEU implementing partner to Eurobank Bulgaria (known under its local brand name Postbank), as an eligible partner financial intermediary ("PFI") in Bulgaria under the EBRD's InvestEU Green Capped Portfolio Guarantee Framework. The guarantee will cover a newly generated portfolio of loans amounting to up to EUR 140 million, financing eligible green projects across industry sectors. The Project benefits from partial first loss risk cover from the European Union under the InvestEU Fund.

Project ID 54801

Status Signed

Location

Bulgaria

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Assets and Liabilities management department / Siyana Nikolova
alm@postbank.bg
www.postbank.bg
260, Okolovrasten pat, 1766 Sofia

Project ID 54801

Status Signed

Location

Bulgaria

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

10 Apr 2024

Disclosure date

12 Feb 2024

InvestEU GUPG - Eurobank Bulgaria (Bulgarian) (PDF, 0.08MB)

Project description

Project objectives

The Project aims to further support the EBRD's green agenda in Bulgaria and the national green economy priorities. As such, the Project will bridge the funding gap for sustainable energy investments in the country, support the resilience of a systemic bank and expand its green lending capacity.

Transition impact

ETI Score: 60

ETI score:60

xpected transition impact stems from the contribution to the Green and Resilient qualities.

Green: by addressing the issue of high energy intensity of the Bulgarian economy through increased sustainable energy investments across industry sectors, leading to energy savings and reduction of carbon emissions. Postbank will allocate at least 125% of the EBRD guarantee amount to eligible green projects, thus enhancing the Project's contribution to green economy transition.
Resilient: by supporting Postbank in building resilience by optimizing its capital base, freeing up capacity for green lending.

Client information

EUROBANK BULGARIA AD

Eurobank Bulgaria/Postbank is the fourth largest and a systemically important bank in Bulgaria with a market share of c. 11.3% of total assets as of YE2023. Postbank is majority-owned by Eurobank Services and Holdings S. A., with a combined (direct and indirect) ownership stake of 99.99%, while the remaining 0.01% is held by minority shareholders.

EBRD Finance Summary

EUR 39,200,000.00

Total project cost

EUR 140,000,000.00

Additionality

The Project provides an innovative financial instrument and risk mitigation to Postbank through a portfolio risk sharing instrument dedicated to green investments, sets standards by way of minimum performance requirements of technologies, as well as climate-related monitoring and reporting standards, and supports the investments with dedicated technical assistance for Postbank and final borrowers and increases market awareness on best performing sustainable energy solutions.

Environmental & Social Summary

Categorised FI (2019 ESP). Postbank has an Environmental and Social Management System (ESMS) in place, including an E&S Policy and other E&S Procedures in compliance with the EBRD's Performance Requirements 2, 4 and 9. Sub-borrowers financed through guaranteed Eurobank's loans will be required to comply with national environmental, health, safety and labour (EHSL) requirements. For potential renewable energy projects financed by loans guaranteed by EBRD, Postbank will need to follow the E&S Eligibility Criteria for such projects, as well as 'The Proposed Management Approach for Solar Supply Chain Risk Management' (CS/FO/21-35) and any subsequent guidance developed under that approach. Postbank will be expected to report on compliance with these to the EBRD. Postbank will be required to apply the E&S Exclusion List, and to refer to EBRD on any operation part of the FI referral list and list of A projects under the ESP 2019. The PFI will report on E&S performance of the operation and compliance with the ESP annually to the Bank.

Technical Cooperation and Grant Financing

The proposed operation will be supported by Technical Cooperation ("TC"), to be structured and managed by EBRD and funded under the InvestEU Advisory Hub.

Company Contact Information

Assets and Liabilities management department / Siyana Nikolova
alm@postbank.bg
www.postbank.bg
260, Okolovrasten pat, 1766 Sofia

PSD last updated

12 Feb 2024

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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InvestEU GCPG - Eurobank Bulgaria

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)