The Bulgarian Development Bank and UniCredit Bulbank signed an agreement under the InvestEU programme

Bulgarian Development Bank and UniCredit Bulbank expand access to financing for businesses through a new guarantee agreement under the InvestEU programme

Bulgarian Development Bank (BDB) and UniCredit Bulbank have signed a new guarantee agreement under the InvestEU programme, aimed at expanding access to financing for businesses.

The agreement will enable the provision of loans worth EUR 100 million to small and medium-sized enterprises as well as mid-cap companies.

The document was signed by Tsanko Arabadzhiev, Chief Executive Officer of BDB, Tsvetanka Mincheva, Chief Executive Officer of UniCredit Bulbank, and Borislav Bangeev, Executive Director and Chief Corporate Banking Officer of UniCredit Bulbank. The ceremony was also attended by Delyana Ivanova, Chair of the Supervisory Board of BDB.

The agreement provides an opportunity to guarantee new loans in support of enterprises in order to enhance their competitiveness, growth and employment, as well as to accelerate investments in innovation, digital development and sustainable business models.

The InvestEU guarantee covers 50% of each loan amount and allows financing to be provided under more favourable terms, including preferential pricing, reduced collateral requirements and lower own-contribution requirements for clients.

“Our partnership with UniCredit Bulbank under the InvestEU programme is yet another confirmation of the role of Bulgarian Development Bank as a bridge between European financial instruments and the real needs of Bulgarian companies. A strategic priority for us is to support commercial banks in providing resources for innovation, digitalisation and green transformation, because these investments shape the economy of the future,” said Tsanko Arabadzhiev, CEO of BDB.

“The signing of this agreement is a clear sign of our commitment to stand by the Bulgarian businesses at times when they most need support. Through the InvestEU guarantee, we are expanding the horizon of opportunities for companies. We continue our partnership with BDB with gratitude and trust, convinced that together we can unlock even more success and contribute to a more sustainable and strong entrepreneurial future for Bulgaria,” added Tsvetanka Mincheva, CEO of UniCredit Bulbank.

“As an institution with a public mission, it is important for BDB to combine efficiency with long-term value for the economy. I believe this initiative will give companies the confidence to implement ambitious investment plans,” said Delyana Ivanova, Chair of the Supervisory Board of BDB.

The InvestEU Programme (2021–2027) is a key EU instrument to support sustainable development, small businesses and innovation.

BDB is among the 17 implementing partners accredited by the European Commission to manage guarantee instruments financed from the “European Union” and “Member State” budgets. The bank obtained this status in 2023, creating conditions for commercial banks to grant new loans totalling more than EUR 900 million.

The guarantees cover a wide range of investment activities - from expanding production capacity and improving services to introducing new business models and implementing innovative products and processes. Eligible investments include process automation, robotic manufacturing, the use of artificial intelligence and other advanced technologies. These investments involve higher costs and pose greater risk for banks in the absence of a guarantee mechanism.