Project Description

A EUR 60 million senior unsecured loan to Procredit Bank Bulgaria (“PCBB”). The loan will have two equal tranches of EUR 30 million each.

Project Objectives

The loan proceeds will be dedicated to financing green economy investments, including, among others, energy efficiency, renewable energy, and climate resilience measures in Bulgaria and Greece, fully aligned with the EBRD’s Green Economy Transition (GET) eligibility criteria.

Transition Impact

ETI score: 60

ETI score: 60

The project contributes to supporting the Green TI quality by helping PCBB expand its financing for sustainable energy projects and develop  the market for green instruments in Bulgaria and Greece and supporting PCBB’s strategic sustainability priorities and the EBRD’s GET approach.

Client Information

PROCREDIT BANK BULGARIA EAD

PROCREDIT BANK BULGARIA EAD

PCBB was established in 2001 and is part of the international ProCredit Holding group, a network of SME banks. With total assets of EUR 2.0 billion as at end-June 2023, the bank ranks 7th among 25 banks operating in the Bulgarian market. PCBB is rated by BBB- (Stable) by Fitch (June 2023).

EBRD Finance Summary

EUR 60,000,000.00

Total Project Cost

EUR 60,000,000.00

Additionality

The project’s additionality is derived from (i) the setting of higher environmental standards through strict eligibility criteria for investments to be financed, (ii) the optimization of the financing structure of PCBB, and (iii) the EBRD’s contribution to knowledge sharing. These factors are key to the timely realization of the project’s objectives and to strengthening the client’s capacity to expand its financing for green consumer solutions

Environmental and Social Summary

Categorised FI (ESP 2019). PCBB is an existing client and will be required in relation to this project to continue to comply with PRs 2, 4 & 9, adhere to the EBRD’s E&S requirements and submit AESRs to the Bank. The proposed transaction will require PCBB to apply the E&S Exclusion List, which was amended for the 2019 policy, and also apply the Referral List as per PR9.

Technical Cooperation and Grant Financing

n/a

Company Contact Information

ProCredit Bank (Bulgaria) EAD Head Office
contact@procreditbank.bg
(+ 359 2) 81 35 808 /809
www.procreditbank.bg
26 Todor Aleksandrov Blvd., Sofia 1303

PSD last updated

08 Nov 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.