Wolf Theiss facilitates Allianz Bank Bulgaria’s strategic partnership with European Investment Bank Group, boosting SME lending capacity

Sofia, 22 March 2024 – Wolf Theiss provided support to Allianz Bank Bulgaria in the review, negotiations and regulatory compliance of a Synthetic Securitization Agreement with the European Investment Bank Group. The execution of the agreement was announced by EIF, EIB and Allianz Bank Bulgaria at the end of February 2024. This arrangement allows Allianz Bank to free up 291 million euro ($315.9 million) in financing for Bulgarian small and medium-sized enterprises and mid-cap companies with a focus on transitioning to climate neutrality, while continuing to maintain its leading market position.

The European Investment Fund offers a layer of protection through a junior tranche worth EUR 29 million, with a counter-guarantee from the EIB, and a senior tranche exceeding EUR 175 million, secured solely by the EIF. The covered portfolio includes consumer loans, as well as loans and leases to SMEs, with total commitments of approximately EUR 207 million.

“We’re delighted that Allianz Bank Bulgaria has entrusted us with this novel instrument. This is a testament to our expertise in complex financial instruments and our growing experience in the Bulgarian market with Synthetic Securitisations, having advised other Bulgarian banks on similar projects. We’re proud to assist Bulgarian financial institutions in leveraging the advantages of this product”,

commented Partner Katerina Kraeva, who led the Wolf Theiss team.

Clifford Chance acted as an international advisor for Allianz Bank Bulgaria.