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Project Description
The EBRD invested EUR 7.9 million in a senior preferred bond issuance of EUR 39.5 million by Allianz Bank Bulgaria AD (“ABB”), a commercial bank incorporated in Bulgaria. The bond has a 4-year maturity, with a call option after the third year, and is expected to be listed on the Bulgarian Stock Exchange within 6 months after issuance. 150 percent of EBRD’s investment in the bonds issued by ABB will be used for eligible projects in line with EBRD’s Green Economy Transition (“GET”) criteria.
Project Objectives
The project facilitates capital market development in Bulgaria, supports the resilience of ABB and helps to deliver the EBRD’s green agenda in the country and national green economy priorities.
Transition Impact
ETI score: 68
The project delivers transition impact through the Resilient quality, as it (i) promotes capital market development in Bulgaria; and (ii) helps to achieve regulatory compliance and strengthens ABB’s loss absorption capacity. The project also supports the Green transition quality through ABB allocating 150% of EBRD’s investments under the project to GET-eligible projects.
Client Information
ALLIANZ BANK BULGARIA AD
Allianz Bank Bulgaria is the eighth largest bank in Bulgaria with total assets of EUR 2 billion, translating into a market share of 2.4% as of year-end 2022. The bank is rated BBB+ (Stable) by Fitch. Allianz SE owns 66.1% of ABB (indirectly).
EBRD Finance Summary
EUR 7.9 million
Total Project Cost
EUR 7.9 million
Additionality
The project’s financial additionality is driven from supporting the success of the issuance in a shallow and challenging market. The project also involves an innovative structure and standard-setting as by requiring ABB to allocate the proceeds from EBRD’s investments to GET-eligible sub-projects, the Bank will help ABB to focus on and promote sustainable projects beyond the regular course of banking business.
Environmental and Social Summary
Categorised FI (ESP 2019). ABB will be required to comply with the Performance Requirements 2, 4 and 9; comply with the EBRD’s Environmental and Social Risk Management Procedures as appropriate; and submit annual environmental and social reports to the Bank. Renewable energy projects financed with EBRD’s use of proceeds will need to follow the E&S Eligibility Criteria for such projects and ABB will be expected to report on compliance with these annually.
Technical Cooperation and Grant Financing
None.
Company Contact Information
Lyuba Pavlova
lyuba.pavlova@bank.allianz.bg
+359 2 930 2326
www.allianz.bg
16 Srebarna Street, 1407 Sofia, Bulgaria
PSD last updated
01 Apr 2023
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
For state-sector projects, visit EBRD Procurement:
Tel: +44 20 7338 6794
Email: procurement@ebrd.com
General enquiries
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.
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