IFC is providing €140 million in long-term financing to Bulgaria’s Postbank to facilitate lending to small and medium-sized enterprises with significant private sector involvement. Half of the fund will support climate-related projects, and the other half will focus on financing women-owned businesses to promote gender equality. Support for women entrepreneurs will be provided through a partnership with Goldman Sachs’ 10,000 Women initiative.
Sofia, Bulgaria, October 24, 2024—IFC invests in Eurobank Bulgaria AD (Postbank), the country’s fourth largest bank, to accelerate Bulgaria’s transition to a sustainable and inclusive economy. It will provide long-term financing of 400 million euros. This financing will directly benefit women-owned enterprises (WSMEs) and small and medium-sized enterprises focused on climate-related projects.
As part of IFC’s broader efforts to foster inclusive economic growth in Bulgaria, the investment will provide €95 million from IFC’s own account, with an additional €45 million to SMBC under IFC’s B Loan Program. Mobilized by Bank EU AG. IFC will also provide advisory support on gender and climate finance.
Bulgaria is the European Union’s most carbon-intensive economy, with emissions four times higher than the EU average, making it increasingly vulnerable to climate change. IFC’s investments, with half of its financing earmarked for climate-related projects, are essential for Bulgaria to meet its sustainability goals and reach net-zero greenhouse gas emissions by 2050.
The other half of the funding will support women entrepreneurs, marking Postbank’s first major gender-focused initiative. Powered by performance-based incentives from the Women Entrepreneurship Opportunity Facility (WEOF) through a partnership with Goldman Sachs 10,000 Women, this investment will directly strengthen financing for women-owned small businesses and improve the Bulgarian business environment. The aim is to promote gender equality in
Petya Dimitrova, CEO and Chairman of the Management Board of Postbank, said: “The cooperation with IFC is a strategic step that positions Postbank as a leader in the financial services sector in Bulgaria. “We aim to help the world adapt to the challenges of climate change.” Create new opportunities for women entrepreneurs who are essential to sustainable economic development. ”
“WEOF is committed to building the capacity of local banks to level the playing field for women-led businesses,” said Charlotte Keenan, Global Head of Women’s at Goldman Sachs 10,000. Ta. “This partnership will enable us to support working capital finance for WSMEs around the world at scale, ensuring resources for continued growth through difficult economic times. , we look forward to reducing the USD 1 billion funding gap for women-owned small and medium-sized enterprises in Bulgaria.”
This initiative is in line with the World Bank Group’s new Country Partnership Framework for Bulgaria, which prioritizes climate action and gender inclusion as key drivers of sustainable development.
Etreva Koka, Group Manager for Financial Institutions at IFC, said: “Facilitating private sector financing for the green transition and gender inclusion is essential for Bulgaria to build competitiveness and improve productivity.” said. “By partnering with Postbank, we are building a more sustainable financial sector that can drive long-term growth, strengthen resilience to climate change, and improve financial access for women entrepreneurs. .”
IFC has supported the development of the country’s private sector for more than 30 years and has committed $128.5 million as of August 2024.
