News and Analysis

The Fund of Funds launches market consultations on a guarantee product for innovations and energy efficiency

26.03.2019

The Fund of Funds (FoF) launches market consultations in connection with the selection of partners for the implementation of the Capped Loss Portfolio Guarantees financial instrument — a product that will be financed by Operational Programme Innovation and Competitiveness 2014—2020 (OPIC), co-financed by the European Structural and Investment Funds.

The instrument aims to support the provision of loans and/or financial leases to both micro, small and medium-sized enterprises (SMEs) and large companies. This is to be achieved by the FoF providing guarantees to the respective financing institutions in order to cover potential losses in the event of final recipients defaulting on loan repayment.

The implementation of the instrument will help enterprises to overcome the challenges, which they encounter in seeking affordable financing arising from the level of risk as determined by banks and their inability to provide sufficient securities to cover that risk. In this regard, the financial instrument will directly enhance and expand the access of target enterprises to affordable external financing.

Lending will target companies from nearly all sectors of the economy, placing an emphasis on two strategic areas. The first one will target projects with a strong innovation component in areas such as Information and Communication Technologies (ICT), the pharmaceutical industry, biotechnologies, mechatronics, nano- and clean technologies, and the creative and recreational industries. The second objective of the scheme is to finance projects in the area of energy efficiency. The financing provided by the FoF will enable the development of a new portfolio amounting at least BGN 685 mln. — BGN 293 mln. for innovations and BGN 392 mln. for energy efficiency, respectively.

The market consultations will take place from 26 March to 30 April 2019 (inclusive) and stakeholders may indicate their interest to participate in the talks until 25 April 2019 (inclusive) by calling us on(+359 2) 801 4050 or sending an e-mail to CPG_OPIC@FMFIB.BG

At the end of the consultation process, the results will be made public, summarised and published in a report on the FoF website.