EBBG Senior loan Climate and Gender (IFC-48705)

Countries
  • Bulgaria
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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."
Borrower
Eurobank Bulgaria AD
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 150.00 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Sep 18, 2024

Disclosed by Bank Aug 6, 2024

Contribute Information
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Contact the EWS Team

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 proposed investment consists of senior loan of up to $150 million in Euro equivalent to Eurobank Bulgaria AD (Postbank or the Bank), the fourth largest bank in Bulgaria. The loan proceeds will focus on women-owned MSMEs (W-MSMEs) and climate related projects by MSMEs and individuals in Bulgaria. The Project presents an opportunity for an impactful engagement in Bulgaria, with pressing challenges of green transition and financial inclusion. The Project is expected to be supported by the Women Entrepreneurs Opportunity Facility (WEOF).

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.

The Project’s proceeds will be used to finance W-MSMEs and climate related projects in retail and MSMEs in Bulgaria. The Project will not support any activities on IFC Exclusion List, coal-related activities, greenfield hydro, off-shore wind, solar PV (other than for individual use, or companies with other core activity than solar PV), and/or higher E&S risk business activities that may include: a) involuntary resettlement, b) risk of adverse impacts on indigenous peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, significant retrenchment or d) significant occupational health and safety risks. E&S risk associated with the supported asset class is considered as medium and therefore, the project has been categorized as FI-2 in accordance with IFC’s Sustainability Policy.

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

The investment is a financing package of up to US$150 million in Euro equivalent. It includes an A loan of up to US$100 million equivalent for IFC’s own account and B loan(s) of up to US$50 million equivalent to be mobilized by IFC from one or more B lenders.

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.

Eurobank Bulgaria AD (Postbank) was established in 1991 and is the 4th largest bank in Bulgaria with EUR10 billion total assets and over 1 million clients served through the head office in Sofia and country-wide network of 229 locations and 12 business centers as of end-2023. The Bank offers a full range of retail and wholesale banking solutions and is one of the market leaders in credit and debit cards, mortgage and consumer loans, saving products, as well as corporate tailored products.

Postbank is a 99.99% owned subsidiary of Eurobank S.A., the 4th largest banking group in Greece, with EUR80 billion total assets and presence also in banking sectors of Cyprus, Luxembourg and the United Kingdom. Eurobank S.A. is wholly owned by Eurobank Ergasias Services and Holdings S.A., a holding company listed on the Athens Stock Exchange.


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.

Eurobank Bulgaria AD
Capital Markets Division

+359 2 81 66 486
ALM@postbank.bg
260, Okolovrasten pat, 1766 Sofia Bulgaria
Websitewww.postbank.bg

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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How it works