Bulgarialuxembourg Eib Signs Tender

The European Investment Bank signs two new operations on the day of its annual results press conference in Sofia- a EUR 18m loan to Software Group supported by the Juncker Plan the EIBs first venture debt operation in Bulgaria- a EUR 20m loan to Raiffeisen Leasing for investments in small and medium-sized companiesIn 2018 EIB Group support in Bulgaria amounted to EUR 217m including- EUR 103m of loans signed by the EIB and- EUR 114m committed by the EIF for eight operations mobilising EUR 228m of investmentsThe loan to Software Group a global technology company helping financial service providers digitise their business and successfully go through the process of digital transformation is the first transaction with venture debt features in Bulgaria. The operation provides direct support to the company and is backed by a guarantee from the European Fund for Strategic Investments EFSI a key component of the Investment Plan for Europe. EIB financing will facilitate the execution of Software Groups RD strategy and strengthen its global reach.The intermediated loan agreement with Raiffeisen Leasing Bulgaria represents the second tranche of a EUR 50m loan. It will finance projects by some 300 small and medium-sized companies supporting at least 8000 jobs in the country.EIB Vice-President Vazil Hudk commented We had a strong showing in Bulgaria in 2018 especially with the roll-out of our advisory services and we are continuing to support the economy in the new year with two important transactions. EIB Group financing represented some 0.4 of Bulgarias GDP last year above EU average while advisory services rendered facilitated the implementation of projects worth some EUR 2bn confirming that the Bank has an important role to play in the country.Deputy Minister of Finance Marinela Petrova stated We welcome the EIB commitment to develop innovative financial instruments to address the investment gaps and to provide innovative pragmatic and efficient solutions to further catalyse investment in the EU. We will rely in the future on this commitment and the ability of the EIB to work with the Bulgarian authorities and businesses on initiatives addressing the needs of our economy.European Commissioner for Digital Economy and Society Mariya Gabriel said With EUR 43bn of additional investment mobilised for the digital sector the Juncker Plan is supporting European businesses embrace and efficiently succeed the process of digital transformation. I welcome the two new operations especially the focus on SMEs. I call on other companies in Bulgaria and elsewhere to follow suit and seize all opportunities.Dobromir Dobrev Deputy CEO of Raiffeisenbank Bulgaria responsible for corporate banking capital markets and the leasing company said Thanks to our long partnership with the EIB we are able to provide sustainable support for the Bulgarian business. So far the Raiffeisenbank Group in Bulgaria and the EIB have signed agreements for EUR 180 million for the bank and the leasing company. Under the new credit line from the EIB through Raiffeisen Leasing Bulgaria we will provide new leasing financing for a wide scope of customers for purchase of equipment trucks and trailers light commercial vehicles and passenger car fleets etc. All this will support the investment plans of the Bulgarian companies and will also increase their competitiveness.CEO of Software Group Kalin Radev commented We are proud to be the first company in Bulgaria that successfully completed the procedure for receiving a venture debt by EIB. The funding will support our ambitious business goals and our plan for development in the next three years. We will invest in innovations attracting top talents entering new business areas while continuing the steady growth of the companyEIB Group results in Bulgaria in 2018Support to corporates to foster strategic infrastructureIn 2018 the EIB provided a loan of EUR 14m to Agria Group Holding AD to finance the construction of a new port facility close to the Port of Varna for the storage handling and export of grain vegetable oils and sunflower meal in the area of Beloslav. This project contributes to the development of a comprehensive trans-European transport network node by improving the capacity and efficiency of the associated supply chain. It supports sustainable transport by promoting sea transport as an alternative to other carbon intensive transport modes and fosters sustainable economic growth and development of a less developed region.Fostering the development of municipal infrastructureThe EU bank also provided two loans to Sofia MunicipalityEUR 22m for the construction of the second stage of Sofia Metro Line 3. This project involves a twin-track metro line 3.8 km long four metro stations and a railway stop for connection to the national railway network. The new metro line will increase public transport passenger capacity encourage a modal shift towards more environmentally-friendly transport and reduce congestion on the existing transport networkEUR 67m to support the construction and commissioning of a new combined heat and power plant for Sofias district heating network operated by Toplofikacia. The new cogeneration plant is designed to process daily more than 100t of refuse-derived fuel from a mechanical biological treatment plant in Sofia.Support for SMEs and mid-capsFollowing a record-breaking year the EIF continued to support SMEs in Bulgaria by committing a total of EUR 78m in 2018 via four new guarantee operations and one new venture capital fund aimed at providing debt and equity financing of EUR 168m in total.Overall in 2018 through EIF operations in Bulgaria more than 3000 small and medium-sized companies received financing worth approximately EUR 408m.