UBB, being part of the Sustainable Cities Fund (SCF) has signed Guarantee Agreements for the implementation of a new financial instrument called Green-capped Portfolio Guarantee for Circular Economy. For the first time in Bulgaria this portfolio guarantee enables the combining of borrowed funding with gratuitous financial aid within a single transaction. In the Sustainable Cities Fund consortium UBB partners with the Fund for Sustainable Urban Development (FSUD), the FLAG Fund and with the Bulgarian Consultancy Organization (BCO). 

The anticipated common portfolio of loans for the two items, implemented by the Sustainable Cities Fund, exceeds BGN 615.5 million /EUR 314.4 million. The SCF is going to lend, under preferential terms, to circular economy projects, incl. energy and resource efficiency, by the end of 2029. An opportunity has been envisaged for an accompanying grant being BGN 57.45 million /EUR 29.37 million (up to 15% of the loan amount). With every individual loan there is also an 80% guarantee from the Fund of Funds. Eligible projects can be realized in all regions of Bulgaria. The maximum repayment period reaches 10 years for energy efficiency loans and up to 15 years for resource efficiency loans. The maximum amount of loans is up to BGN 7.5 million /EUR 3.8 million, as it should also be complied with the applicable state aid regime.

„This is yet another agreement in a row in the sustainable funding domain, which we sign with the Fund of Funds. We are happy with the fact that over this year there is a special emphasis on circular economy. But most importantly, this programme is a true example of how the cooperation between the public and private sectors enables Bulgarian businesses to obtain funding and realize significant projects that will contribute to both the modernization of the Bulgarian economy, carbon footprint reduction and preservation of the environment, as well as to this country's economic growth.“, shared Christof De Mil, Chief Executive Officer of UBB.

The Sustainable Cities Fund was ranked first in terms of all 12 individual items of the procedure and was awarded contractor by the Fund of Funds for the two largest of those – items 11 and 12, with a total public resource of BGN 156 million/ EUR 80 million. These funds have been ensured under the Competitiveness and Innovation in Enterprises 2021–2027 programme, co-financed by the European Union through the European Regional Development Fund (ERDF). Loans with alleviated conditions and gratuitous financial aid can be used by both SMEs, as well as Corporate customers.

On behalf of the SCF the agreements were signed by Christof De Mil, Chief Executive Officer of United Bulgarian Bank (UBB), Frank Jansen, Executive Director of UBB, Nadya Dankinova, FLAG Fund Executive Director, Viktor Yotsov, Executive Director of the Fund for Sustainable Urban Development, and Stoyan Stavrev, General Manager of the Bulgarian Consultancy Organization. On behalf of the Fund of Funds their signatures laid the Executive Directors Aleksandar Nenkov and Aleksandar Georgiev. During the ceremony participants were greeted by the Deputy Minister of the Economy and Growth Krassimir Yakimov and by Iliyana Ilieva, Head of the Managing Authority of the Competitiveness and Innovation in Enterprises Programme.

The official start of the instrument is expected at the beginning of 2026, when a call for projects will be published on the website of the Sustainable Cities Fund  – www.citiesfund.bg. The offering of products will be made through the physical distribution channels of UBB.