Loan Financing

Participating Banks and Loan Financing

The loan financing component is provided by the EBRD through local commercial banks (Participating Banks or PBs) under the Bulgaria Energy Efficiency Competitive Industry Finance Facility (BEECIFF). For the initial phase, the EBRD has selected the following local commercial banks:

The involvement of these Participating Banks in the Programme starts already early in the project cycle, as one of their responsibilities is to perform a financial eligibility check of applicants. This financial eligibility check is performed after the Project Assistant has performed and confirmed a positive technical eligibility.
In order to be eligible, SMEs should secure at least 80% of the total project costs upfront. This could be through either a loan from a Participating Bank, or own funds, or a combination of both. The financial eligibility check by a PB ensures that approved applicants can ensure the necessary financing resources for implementing the project shortly after the final approval of the project proposal. As the grants will only be disbursed after the successful implementation of the projects (verified by the Verification Assistant), the beneficiaries have also to pre-finance the grant funds.  

Applicants are free to decide which of the Participating Banks to contact in order to obtain the financial eligibility check and financing in case they do not have sufficient own fund to implement the project. Each Participating Bank has detailed knowledge of the programme and can assist in identifying the optimal investment size of projects which fit the financial capability of the applicant.

The financial eligibility is confirmed by the Participating Banks by a

  • Preliminary term-sheet issued to the applicant; and/or
  • Confirmation of the availability of own funds of the applicant.

After the Managing Authority approves the final grantby, applicants who obtained a preliminary term-sheet must finalise their negotiations with their Participating Bank in order to sign a loan agreement.