The loan is part of the second extension of the Bulgarian Energy Efficiency and Renewable Energy Credit Line Framework to provide up to €55M (US$74.2M) in credits to banks involved in lending for energy efficiency and renewable energy projects.
The programme is complemented by grant funding from the Kozloduy International Decommissioning and Support Fund, which will be used for technical assistance to support project preparation and awareness raising activities, and for incentives to companies and banks that successfully implement projects.
These incentives will be based on the estimated level of energy savings or annual production of clean energy derived from renewable sources.
Reducing energy intensity is one of the main priorities of Bulgaria’s energy policy, together with ensuring the security of supply and the sustainable development of the energy sector.
In this context, Bulgaria has already set a national target for energy savings of no less than 9% of domestic energy consumption over a period of nine years up until 2016.
Signing the project, EBRD President Thomas Mirow said that this credit line is an important element of the Sustainable Energy Action Plan signed today with the government of Bulgaria. “It will further increase investments in energy efficiency and renewable energy at a time when market conditions remain difficult,” he said.
“With the funds from this credit line UniCredit Bulbank aims to encourage and support the energy responsible attitude and will promote the energy production from renewable energy sources, which has a lot of environmental and economic advantages”, added Levon Hampartzoumian, Chief Executive Officer of UniCredit Bulbank.
The EBRD is one of the largest investors in Bulgaria with some €1.7B (US$2.3B) committed to projects across the country. Working with its many partners, the Bank has mobilised more than €6.2B (US$8.4B) for projects in Bulgaria.
UniCredit Bulbank, member of the European UniCredit Group, is the biggest Bulgarian bank with assets of above BGN 11B. The bank serves over one million active clients through one of the widest banking networks in Bulgaria with more than 260 branches and offices in the country.
Over the last few years the EBRD played a significant role in supporting Bulgaria’s efforts to reduce energy intensity and has developed targeted financial instruments to accelerate transition to a low-carbon economy.
