The European Investment Bank (EIB) Group has announced a new financing agreement with Allianz Bank Bulgaria that will unlock approximately €340 million in support for Bulgarian small and medium-sized enterprises (SMEs) and mid-cap companies over the next three years. The deal, announced on 5 June 2026, is designed to expand access to credit and stimulate economic growth while also supporting climate-related investments.
The agreement uses a financial mechanism known as synthetic securitisation, which allows the EIB Group to assume part of the credit risk from Allianz Bank Bulgaria. This approach frees up lending capacity for the bank, enabling it to significantly increase new business lending across the country.
Of the total financing, more than €80 million will be directed toward climate action and environmental sustainability projects. This focus aligns the agreement with broader European Union objectives to accelerate the green transition while supporting private sector development.
The structure of the deal includes risk protection provided through the European Investment Fund, part of the EIB Group, with additional backing from the EIB itself. The arrangement covers both mezzanine and senior tranches of the loan portfolio, allowing Allianz Bank Bulgaria to expand its lending base while maintaining financial stability.
EIB Vice-President Marek Mora highlighted that the initiative demonstrates how innovative financial instruments can directly benefit the real economy by improving access to finance for businesses. He emphasized that the agreement will help companies invest, grow, create jobs, and transition toward more sustainable business models.
Executives from Allianz Bank Bulgaria also noted that the partnership will enhance the bank’s ability to support corporate development, innovation, and long-term competitiveness. The use of synthetic securitisation was described as an efficient way to optimize capital, strengthen risk management, and redirect resources into new lending activities.
This marks the second such securitisation arrangement between the EIB Group and Allianz Bank Bulgaria, following an earlier agreement in 2023 that also supported SME financing and environmental investment.
The European Investment Fund reinforced the importance of such structures in mobilizing private capital and expanding affordable financing for smaller businesses, while contributing to Europe’s wider climate and growth goals.
Overall, the agreement represents a significant step in strengthening Bulgaria’s SME financing ecosystem while aligning financial support with sustainability priorities.
