29.03.2024 Tsanko Arabadzhiev: The Bulgarian Development Bank is an effective partner in the energy transition of business
Every fourth transaction in the bank’s portfolio is now a green investment
The Bulgarian Development Bank (BDB) is actively participating in the energy transition of the country. The companies in the bank’s green portfolio have increased to a quarter of the total number of companies which the BDB has supported in the past two years. This was stated by the bank’s Executive Director, Tsanko Arabadzhiev, at the Energy of Tomorrow Conference organized by Investor Media Group.
He specified that the green criteria for enterprises are fully in accordance with the requirements of the European Investment Bank, which is a partner providing technical assistance in the development of the internal bank rules of the BDB for evaluating projects.
Small and medium-sized businesses have an increased interest in the programmes related to the transition to a low-carbon economy.
Undoubtedly, one of the most sought-after programmes of the Bulgarian Development Bank is the solar energy programme, providing project financing for the installation of photovoltaic plants. Through it, facilities at the value of up to BGN 5 million are built with a repayment period of up to 15 years and a grace period of 18 months.
With regard to companies that implement projects under national and European programmes (National Recovery and Resilience Plan - NRRP and European Structural and Investment Funds - ESIF), the Bulgarian Development Bank provides a bridge financial resource for the implementation of the projects before receiving the grant. The programmes finance measures related to the modernization and digitalization of enterprises with the aim of increasing their energy efficiency.
A liquid resource with lower collateral requirements is also provided by the programmes with a guarantee under the InvestEU Programme, whose implementing partner in Bulgaria is the Bulgarian Development Bank.
In the last year, the bank signed agreements for a total of BGN 700 million with the European Investment Bank and the Council of Europe Development Bank, which will further facilitate access to financing for Bulgarian business.
