Three candidates have submitted an application for participation in the procedure for the selection of financial intermediaries for the management of the Urban Development Funds during the 2021 - 2027 programming period
Three of the leading banks in the country are interested in the instrument
Three applications were received by the Fund of Funds for the management of each of the three Urban Development Funds (UDFs), supported by funds from the Regional Development Programme 2021-2027 (RDP) and the Competitiveness and Innovation Programme 2021-2027 (CIP), co-financed by the European Union.
Two of the urban development funds are for Northern Bulgaria (UDF North 1 and UDF North 2), and one for Southern Bulgaria (UDF South). The total public resource to be distributed between the three funds amounts to over BGN 513 million (BGN 442.6 million under the PRR and BGN 70.9 million under the UCITS).
This is the third announced procedure for the selection of intermediaries by the Fund for Sustainable Cities within the new programming period and candidates including three of the largest banks in the country have expressed interest in it, as follows:
1. DZZD "Sustainable Cities Fund" with participants in the association:
- FLAG Fund EAD
- Sustainable Urban Development Fund EAD
- Bulgarian Consulting Organization EOOD
- United Bulgarian Bank AD
2. DSK Bank AD
3. Green and Smart Urban Development Fund Consortium with participants:
- UniCredit Bulbank AD
- North West Development EOOD
The financial instrument GDF will attract private capital to the public resources provided by the two programs, thus improving access to financing for the final recipients for the implementation of investments contributing to achieving the goals and indicators of the two programs.
The public resource for the instrument is provided through risk-sharing financing and an embedded/portfolio guarantee that covers the risk of loss on the funds provided by the fund manager. Support to final recipients can be implemented in the form of loans and/or financial leasing until the end of 2029.
For the first time, a grant (GFA) is envisaged with RDP funds, to be provided by intermediaries in combination with loan financing under the instrument.
RDP support is aimed at public and private projects to promote economic activity, sustainable urban mobility, improvement and development of health and social services, education, culture, sports and tourism, energy efficiency of buildings, green urban environment measures, etc.
The resource under the UCIP is aimed at investments by SMEs and mid-cap companies within new/existing industrial parks and in functional proximity to them.
After opening the applications, applicants will be checked for compliance with the set selection criteria. Those admitted to the next stage of the selection process will receive an invitation to submit initial offers.