UniCredit Bulbank will participate in the implementation of the Urban Development Fund financial instrument for the 2021-2027 programming period in partnership with Nord West Development Ltd. as part of the Green and Smart Urban Development Fund Consortium. The consortium has signed an operational agreement with Fund Manager of Financial Instruments in Bulgaria EAD (Fund of Funds) and was selected as a financial intermediary for one of the two Urban Development Funds in Northern Bulgaria.
The operational agreements were signed by Aleksandar Georgiev and Aleksandar Nenkov, Executive Directors of the Fund of Funds. On behalf of the Green and Smart Urban Development Fund Consortium, the documents were signed by Borislav Bangeev, Head of Corporate Banking and Member of the Management Board of UniCredit Bulbank, and Lyubomir Stanislavov, Managing Director of Nord West Development Ltd.
“Northern Bulgaria is a region with enormous potential that needs more projects contributing to the development of local communities and the economy. We are grateful for the trust placed in us to manage more than €70 million in public resources, which, together with the financing we will mobilize, is expected to reach approximately €120 million. We hope these funds will reach high-quality projects in the northern regions of the country as quickly as possible. This is a significant responsibility for us, and we are committed to managing these resources transparently, professionally, and responsibly, so that we can soon see the results of the investments made,”
said Tsvetanka Mincheva, Chief Executive Officer and Chairperson of the Management Board of UniCredit Bulbank, during the official signing ceremony.
The total public resources available under the financial instrument amount to €262.5 million and are provided through the Regions in Growth Programme 2021-2027 and the Competitiveness and Innovation in Enterprises Programme 2021-2027, co-financed by the European Union. The instrument will be implemented through three Urban Development Funds, two covering Northern Bulgaria and one covering Southern Bulgaria. Including the private capital mobilized by the financial intermediaries, the total volume of investments is expected to reach up to €400 million.
Support under the Regions in Growth Programme covers 10 large cities and 40 medium-sized and smaller municipalities and is targeted 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 Competitiveness and Innovation in Enterprises Programme are intended for investments by small and medium-sized enterprises (SMEs) and mid-cap companies in new and existing industrial parks, as well as in areas functionally connected to them.