InvestEU GCPG - ProCredit Bank Bulgaria (EBRD-54945)

Countries
  • Bulgaria
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Sep 17, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
PROCREDIT BANK BULGARIA EAD
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 15.57 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 14
Converted using 2024-09-17 exchange rate.
Project Cost (USD)
$ 55.61 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 50
Converted using 2024-09-17 exchange rate.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ EBRD website

Updated in EWS Feb 22, 2025

Disclosed by Bank Sep 19, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project consists of a capped unfunded portfolio risk-sharing in the amount of up to EUR 14 million, to be provided by the EBRD as an implementing partner under the European Union's InvestEU programme to ProCredit Bank (Bulgaria) EAD ("PCBB"), as an eligible partner financial intermediary ("PFI") in Bulgaria under the InvestEU Green Capped Portfolio Guarantee Framework. The guarantee will cover a newly generated portfolio of loans financing eligible green projects in Bulgaria and Greece. The Project benefits by first loss risk cover from the European Union under the InvestEU Fund.

The Project aims to further support the Bank's green agenda in Bulgaria and Greece and the green economy priorities. As such, the Project will bridge the funding gap in sustainable energy investments in the two countries, support the resilience of a key SME-finance provider and expand its green lending capacity.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Sub-borrowers financed through guaranteed PCBB's loans will be required to comply with national environmental, health, safety and labour requirements. For potential renewable energy projects financed by loans guaranteed by EBRD, PCBB 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/22-08). 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Capped unfunded portfolio risk-sharing in the amount of up to EUR 14 million.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

ProCredit Bank Bulgaria ("PCBB") is a commercial bank in Bulgaria and a long-standing existing client of the Bank. PCBB is a key player in financing small and medium size enterprises in Bulgaria and the 7th largest bank in the country with a market share of 2.5% in terms of total assets as of end-June 2024 and is rated BBB- by Fitch (June 2024). PCBB is a 100% owned subsidiary of ProCredit Holding ("PCH"), which is listed 473.5 million as of 17 September 2024.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

COMPANY CONTACT INFORMATION

ProCredit Bank (Bulgaria) Head Office
contact@procreditbank.bg
+359 700 1 70 70
www.procreditbank.bg
26 Todor Aleksandrov Blvd. Sofia 1303

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

How it works

How it works