Suitable financial instruments for you

Indicative budget of the instrument

EUR 262.3 M

Implementation mechanism

Capped portfolio guarantee, stand-alone guarantees and/or risk-sharing loans with the possibility to implement a financial instrument in combination with a grant in a single operation.

Objectives of the instrument

To provide debt financing for projects of final recipients from the private and public sectors, incl. in combination with a grant, aimed at promoting and developing measures that boost:

• economic activity,
• investments in new/existing industrial parks,
• green urban environment,
• sustainable urban mobility,
• health and social infrastructure,
• educational infrastructure,
• tourism, sports, and culture,
• energy efficiency of public and residential buildings.

Source of public resource

Development of Regions Programme 2021-2027 and Competitiveness and Innovation in Enterprises Programme 2021-2027, co-financed by the European Regional Development Fund

Current stage of the instrument

Selected financial intermediaries

Financial resources

• public resources in the amount of EUR 182.5 million;

• additional private co-financing from the financial intermediaries.

Goals of the instrument

• improve urban environment (including public transport, culture and sport infrastructure);

• stimulate economic growth in the regions through the development of economic development zones in the cities, improved energy efficiency of single-family residential buildings and student dormitories;
• promote the development of tourism related to immovable cultural heritage of national or world importance.

Final recipients

• municipalities and municipal enterprises;
• private companies;
• public/private partnerships;
• private citizens.

Type of financing

• low-interest investment loans and working capital loans, including non-refundable VAT;
• up to EUR 20 million for urban environment and up to EUR 10 million for regional tourism;
• a repayment term of up to 20 years and a grace period of up to 3 years;
• guarantees for the financial intermediaries of up to 80% per individual loan and up to 25% of the entire portfolio;
• low interest rates;
• no management fee chargeable on the public resources;
• relaxed collateral requirements;
• a low level of self-financing by final recipient (0% -15%);
• for certain sectors, an option to combine the financial instrument with grant support.

Source of the public resources

Operational Programme Regions in Growth 2014 — 2020 co-financed from the European Regional Development Fund

Current stage of the instrument: reinvestment period until the end of 2031

Financial intermediaries

For the regions of Southern Bulgaria and the City of Sofia, the Fund for Sustainable Cities Consortium (FSC):

For the region of Northern Bulgaria, the Regional Urban Development Fund (RUDF)

The Fund of Funds invests additional resources in urban environment under the Joint European Support for Sustainable Investment in City Areas initiative (JESSICA). Further information is available here.