- EBRD lends €20 million to Bulgaria’s Sofia Med, backed by InvestEU guarantee
- This is first EBRD Bulgaria loan to link sustainability performance to pricing
- In 2025 EBRD financed €295 million of private investments in Bulgaria
The European Bank for Reconstruction and Development (EBRD) is strengthening its presence in Bulgaria’s corporate banking market with an innovative €20 million loan to copper fabricator Sofia Med. The transaction benefits from an EU guarantee under the InvestEU programme and is the EBRD’s first in Bulgaria to link sustainability performance to pricing.
Bulgaria is working to accelerate its green economy transition, and copper is a critical raw material for the green transition, essential for electrification, renewable energy infrastructure and e-mobility. Fabricators are uniquely positioned to increase the share of secondary copper in production by expanding scrap collection networks and investing in recycling capacity to process copper products reaching the end of their life.
Around 30 per cent of the global annual copper demand is met through recycling, but Europe faces a scrap deficit as around half its scrap is exported. Bulgaria also needs to improve its water efficiency, requiring infrastructure renewal.
This loan replicates the structure of a Sustainability-Linked Loan (SLL) with measurable green key performance indicators (KPIs) to promote recycling, focussing on increasing the use of secondary recycled content and enhancing water efficiency.
The project’s InvestEU first loss guarantee of just under 25 per cent enables the EBRD to offer Sofia Med a financial incentive through adjusted loan pricing conditional on the achievement of the pre-agreed sustainability targets.
InvestEU is a flagship initiative of the European Union aimed at supporting strategic investments in sustainable infrastructure, research, innovation and digitalisation, small and medium-sized businesses and social investment and skills. It provides a guarantee mechanism to unlock financing that might not otherwise be available, focusing on projects that promote long-term growth and resilience.
The EBRD is one of the leading implementing partners of the InvestEU Programme and deploys portfolio risk sharing instruments for financial intermediaries across the EU economies where it invests. By working with local financial institutions and market players, the EBRD ensures that InvestEUsupport is delivered efficiently and is aligned with local needs and opportunities.
Sofia Med AD is an existing client of the Bank and a subsidiary of Viohalco, a leading European non-ferrous metals manufacturer with operations in aluminium, copper, cables, steel and steel pipes, processing and trade.
A decade-long partnership between the Bank and Viohalco’s subsidiaries included support for energy efficiency, expansion into green application products and other GET-eligible investments in Bulgaria and Greece, allowing them to advance its operations in line with the global ESG agenda.
The EBRD’s Country Strategy for Bulgaria for 2025-30 supports decarbonisation and increased energy and resource efficiency for industrials.
A major institutional investor in Bulgaria, the Bank has invested more than €5 billion in 320 projects to date.