- IFC is providing €140 million in long-term financing to Bulgaria’s Postbank to boost financing for smaller enterprises, with significant private sector involvement.
- Half of the funds support climate-related projects, while the other half focuses on financing women-owned businesses to promote gender equality.
- The support for women entrepreneurs is through a partnership with Goldman Sachs 10,000 Women initiative.
Sofia, Bulgaria, October 24, 2024—IFC is providing €140 million in long-term financing to Eurobank Bulgaria AD (Postbank), the country’s fourth-largest bank, to help advance Bulgaria's transition to a sustainable and inclusive economy. This financing will directly benefit smaller enterprises, with a focus on women-owned businesses (WSMEs) and climate-related projects.
As part of IFC's broader efforts to foster inclusive economic growth in Bulgaria, the investment provides €95 million from IFC’s own account, while an additional €45 million is mobilized from SMBC Bank EU AG under IFC’s B loan program. IFC also plans to provide advisory support on gender and climate finance.
Bulgaria has the most carbon-intensive economy in the European Union (EU), with emissions four times the EU average, and is becoming increasingly vulnerable to climate change. With half of the financing dedicated to climate-related projects, IFC's investment is vital in helping Bulgaria meet its sustainability goals and achieve net-zero greenhouse gas emissions by 2050.
The other half of the funds will support women entrepreneurs, marking Postbank's first major gender-focused initiative. Bolstered by a performance-based incentive from the Women Entrepreneurs Opportunity Facility (WEOF) through partnership with Goldman Sachs 10,000 Women, the investment is designed to directly enhance lending to women-owned smaller enterprises and promote gender equality in Bulgaria's business landscape.
"Collaboration with IFC marks a strategic step in positioning Postbank as a leader in Bulgaria's financial services sector,” said Petia Dimitrova, CEO and Chair of the Management Board of Postbank. "Through this agreement, we aim to support businesses in adapting to climate challenges and create new opportunities for women entrepreneurs, who are vital to the development of a sustainable economy.”
“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 Goldman Sachs 10,000 Women. “This partnership allows us to support scale of working capital finance for WSMEs globally to ensure resources for their continued growth through challenging economic times. We look forward to working with Postbank to decrease the US$1billion finance gap for women-owned small and medium enterprises in Bulgaria.”
This initiative aligns 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.
“Catalyzing private sector financing for the green transition and for gender inclusion is essential for Bulgaria to build competitiveness and boost its productivity,” said Etleva Koka, IFC Financial Institutions Group Manager. “By partnering with Postbank, we are building a more sustainable financial sector that can drive long-term growth, enhance climate resilience, and improve financial access for women entrepreneurs.”
IFC has been supporting private sector development in the country for over 30 years, with a committed exposure of $128.5 million as of August 2024.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
Stay Connected with IFC on social media.
About Postbank
Postbank is a leader in sustainable finance in Bulgaria. The institution continuously develops its policies and management practices by offering effective financial solutions and applying innovative approaches to meet market requirements. The bank also has a rich portfolio of products and services that best meet consumer expectations, preferences, and needs, enhancing the customer experience. It is one of the most awarded companies in various national and international competitions, with one of its latest awards in 2024 being in the “Mystery Shopper” category at the Bank of the Year Association’s annual awards for overall customer satisfaction with service and the performance of financial institution front offices. For more information, visit www.postbank.bg.
About Goldman Sachs 10,000 Women
Goldman Sachs 10,000 Women is an ongoing initiative to foster economic growth by providing women entrepreneurs around the world with a business and management education and access to capital. The initiative has reached over 200,000 women from over 150 countries. In partnership with the International Finance Corporation (IFC), Goldman Sachs 10,000 Women launched the first-of-its-kind global finance facility in 2014 to enable access to capital to more women entrepreneurs. The 10,000 Women in-person business education program was launched in 2008, reaching over 10,000 women across 15 countries around the world, and in 2018, the 10,000 Women curriculum was made available online through Coursera, further democratizing access to a business education in more corners of the world. For more information, visit https://www.goldmansachs.com/citizenship/10000women/.
Contacts
Stay Informed
Sign up to have customizable news & updates sent to you.