With the private resources mobilised by the financial intermediaries, total financing is expected to reach EUR 400 million
Fund Manager of Financial Instruments in Bulgaria EAD (FMFIB / Fund of Funds) has signed operational agreements with the two selected financial intermediaries – the Fund for Sustainable Cities Consortium and the Green and Smart Urban Development Fund Consortium – for the implementation of the financial instrument “Urban Development Fund” under the 2021–2027 programming period.
The instrument will be implemented through three funds with different territorial coverage – two for Northern Bulgaria operating on a competitive basis and one for Southern Bulgaria. The Fund for Sustainable Cities Consortium will manage one of the Urban Development Funds for Northern Bulgaria and the Urban Development Fund for Southern Bulgaria, while the Green and Smart Urban Development Fund Consortium will manage the second Urban Development Fund for Northern Bulgaria.
The Fund for Sustainable Cities Consortium comprises United Bulgarian Bank AD, FLAG Fund EAD, Fund for Sustainable Urban Development EAD and Bulgarian Consulting Organisation EOOD. The Green and Smart Urban Development Fund Consortium includes UniCredit Bulbank AD and North West Development EOOD.
The signing ceremony was attended by Krasimir Yakimov, Deputy Minister of Economy, Investment and Industry, representatives of the Managing Authority of the Development of Regions Programme, members of the Management Board and representatives of the Fund of Funds, as well as representatives of the financial intermediaries.
In his address to the signatories, Krasimir Yakimov stated that the objective is clear – to ensure that European funds reach people and businesses and contribute to the development of a better urban environment, more modern infrastructure and a more competitive local economy.
“Today, we are mobilising over EUR 260 million in public resources, which, combined with the private capital attracted, will result in investments exceeding EUR 400 million. Investments in more sustainable mobility, education, healthcare, tourism, sports, culture and social services, as well as industrial zones – investments that have the potential to bring about a qualitative transformation of our surroundings,” Yakimov added.
The financial instrument will provide long-term loan financing until the end of 2029 for public and private projects supporting sustainable urban and regional development. For projects under the Development of Regions Programme 2021–2027, the possibility of combining loan financing with grants provided by financial intermediaries within a single operation has been introduced for the first time.
The total public resources for the financial instrument amount to EUR 262.5 million, provided under the Development of Regions Programme 2021–2027 (DRP) and the Competitiveness and Innovation in Enterprises Programme 2021–2027 (CIEP), co-financed by the European Union. With the additional private financing mobilised by the intermediaries, the total resources available for support are expected to reach EUR 400 million.
Support under the DRP covers 10 large and 40 medium-sized and smaller urban municipalities and is aimed at investments in economic activity, green urban environments, sustainable mobility, energy efficiency, healthcare, social and educational infrastructure, culture, sports and tourism. The resources under the CIEP are intended for investments by SMEs and mid-cap companies in new and existing industrial parks and in areas functionally linked to them.
The operational agreements were signed by FMFIB Executive Directors Aleksandar Georgiev and Aleksandar Nenkov.
The signatories representing the Fund for Sustainable Cities Consortium were Christophe De Mil, Chief Executive Officer of United Bulgarian Bank; Dobromir Dobrev, Executive Director of Corporate Banking and Markets at United Bulgarian Bank; Nadya Dankinova, Executive Director of FLAG Fund; Viktor Yotsov, Executive Director of the Fund for Sustainable Urban Development; and Stoyan Stavrev, Manager of the Bulgarian Consulting Organisation.
The Green and Smart Urban Development Fund Consortium was represented by Tsvetanka Mincheva, Chief Executive Officer and Chair of the Management Board of UniCredit Bulbank; Borislav Bangeev, Chief Corporate Banking Officer and Member of the Management Board of UniCredit Bulbank; and architect Lyubomir Stanislavov, Manager of North West Development EOOD.
