United Bulgarian Bank AD (UBB) has signed a Guarantee Agreement with the Bulgarian Development Bank (BDB) under the InvestEU programme for building two portfolios of total value EUR 335 million, thus expanding the access to funding for enterprises and supporting the realization of sustainable investments in Bulgaria. The document was signed on 18.12.2025 at the BDB Head Office by Mr. Tsanko Arabadzhiev, BDB Executive Director, and Mr. Frank Jansen, Management Board Member and Executive Director SME Banking at UBB.

By signing the Agreement, the two financial institutions create additional opportunities for supporting competitive, innovative and sustainable projects, as the guarantee mechanisms under the InvestEU programme accelerate the implementation of investments with significant economic and environmental impact on the market in Bulgaria.

„It is important for UBB to be a partner of BDB under the InvestEU programme. The credit guarantee is intended to provide funding under preferential terms for small and medium-sized enterprises and to support economic growth and regional development. The funds under the programme are in accordance with our priority pillars – competitiveness, innovations, digitalization and sustainability“, said Frank Jansen, Executive Director SME Banking at UBB.

This partnership envisages the application of loss-capped portfolio guarantees, which facilitate lending to customers under preferential terms. Within the Agreement UBB will offer funding under two guarantee sub-products, each with an inclusion period until 31.12.2030:

• Guarantee product for SMEs – Loss-capped Guarantee sub-product with a potential for building a loan portfolio up to EUR 300 million. Eligible SMEs are those under the SME Act and small and medium-sized enterprises (with staff number up to 499 employees). Funding can be for both investment and working capital needs (incl. revolving one), with 80% guarantee coverage, a guarantee fee of 0.24% on the loan amount, maximum loan amount up to EUR 8.25 million and tenor up to 120 months. The eligibility scope is a broad one – common goals, sustainability, innovations and digitalization, culture - upon preferential terms for the end beneficiary and while applying the state aid regimes in accordance with the General Block Exemption Regulation (GBER).
   
• Sustainable Investments guarantee product – Waste, Effluent and Clean Air Management sub-product with potential for building a loan portfolio up to EUR 35 million. Eligible beneficiaries are municipalities and enterprises (large ones included), implementing or planning to implement projects for construction and demolition waste management, production of recycled construction materials and/or activities of organizations for utilization of packaging waste. Funding can be for both investment and working capital needs (incl. revolving one), with 80% guarantee coverage, a guarantee fee of 0.24% on the loan amount, maximum loan amount up to EUR 8.25 million and tenor up to 180 months, with the eligibility being particularly focused on wastes and circular economy with envisaged preferential terms for the end beneficiary and upon applying the state aid regimes according to the General Block Exemption Regulation (GBER).

The InvestEU programme, implemented over the period 2021–2027, is a key instrument of the European Commission for supporting sustainable development, small businesses and innovations. It aims at stimulating investments, green economy, employment and prosperity across Europe.