Investment & Fund Management

The European Investment Fund (EIF) and First Investment Bank (FIB) entered into a guarantee agreement aimed at supporting innovative small and medium-sized enterprises (SMEs) and Small Mid-caps in Bulgaria. This initiative, funded by the European Commission under the Risk Sharing Instrument (RSI), allows FIB to provide a total of EUR 15 million in debt financing over the next two years, backed by a 50% guarantee from the EIF. This agreement marks the first RSI initiative in Bulgaria and the 23rd across Europe, contributing to a total loan finance pool exceeding EUR 2 billion for innovative businesses within the EU.

The primary challenge addressed by this agreement was the limited access to financing for innovative SMEs in Bulgaria, which often struggle to secure necessary funds for research, development, and innovation activities. The tailored solution provided by the EIF through the RSI enables FIB to offer these companies additional financing at more favorable conditions, thereby facilitating their growth and innovation potential.

As a result of this partnership, FIB is positioned to channel much-needed finance quickly to innovation-driven businesses across Bulgaria, enhancing their ability to invest in new projects and technologies. This initiative not only supports the local economy but also aligns with broader EU objectives to foster innovation and entrepreneurship within the region.