UBB, CSOB and EIF with additional EUR 115 million in support of the Bulgarian innovative enterpris
12 October 2018
UBB, CSOB and the European Investment Fund /EIF/ signed a new guarantee agreement for additional EUR 115 million under the InnovFin Programme - in view of facilitating the access to financing of innovative small and medium (SMEs) and mid-cap enterprises (with up to 499 employees) in Bulgaria and Slovakia.
The current agreement is an expansion of the guarantee agreement under the programme, signed in 2016 that was successfully implemented. This operation is an Umbrella contract within the InnovFin Programme, with UBB acting as a coordinating institution and also includes an agreement with Československá obchodná banka a.s. (CSOB) – also part of KBC Group. With the new agreement the total portfolio of both banks under the programme reaches EUR 180 million.
UBB will be able to provide loans with guarantees under preferential terms to innovative SME and Small mid-cap enterprises until 30.11.2021. The guarantee from the European Investment Fund is in line with the initiative InnovFin - EU Finance for Innovators with financial aid under Horizon 2020, the framework programme of the EU for scientific research and innovations (part of the Juncker Plan).
In regard to the Agreement with EIF Peter Andronov – UBB’s Chief Executive Officer and Country Manager of KBC Group for Bulgaria - stated: „We believe that the new guarantee agreement between UBB and EIF under the InnovFin Programme symbolizes the successful partnership between the two institutions. UBB has substantial experience in SME lending and the present agreement will enable more innovative companies (both SMEs, as well as mid-caps) to accomplish their ideas, while using funds under preferential terms and alleviated collateral-related conditions“.
UBB is the first participant in Bulgaria under the Juncker Plan. Besides the granted loans under the InnovFin Programme, the Bank has negotiated approximately 1800 loans, totaling over BGN 300 million under the COSME Programme. Thus, thanks to the guarantee instruments of the EIF – part of the Juncker Plan - UBB has considerably facilitated the access to funding on the part of Bulgarian SMEs and Small mid-cap enterprises for the realization of their ideas.