FMFIB launches a tender procedure for selection of financial intermediaries under a financial instrument Urban Development Fund


The Fund Manager of Financial Instruments in Bulgaria EAD / FMFIB/ has launched a procedure for selection of financial intermediaries for the Urban Development Fund under the Operational Program "Regions in Growth" 2014-2020, co-financed by the European Structural and Investment Funds (ESIF).

The programme resources totaling BGN 353.3 million, will finance projects in the urban development area of 39 cities and in regional tourism with no territorial limitations in Bulgaria.

The launch of the financial instrument (FI) has been supported by European Investment Bank (EIB) Advisory Services, provided through the European Investment Advisory Hub (EIAH). 

The investments envisaged under the financial instrument will be implemented through three regional funds vested with the following ESIF resources:

  • UDF Sofia with financial resources of BGN 87.4 million;
  • UDF Northern Bulgaria with financial resources of BGN 130.4 million;
  • UDF Southern Bulgaria with financial resources of BGN 135.5 million.

The above budgets will be concentrated in the areas covering urban development, energy efficiency, tourism and cultural heritage. The Priority Axes on which the funds will be invested are “Sustainable and Integrated Urban Development”- Axis 1 /PA1/ and “Regional Tourism”- Axis 6. Financial intermediaries will have to provide co-financing with private resources for at least 30% of the total amount of funding provided by the UDF for each investment project.

Under “Sustainable and Integrated Urban Development”- Axis 1 / PA1 investments can be made in projects enhancing urban environment, urban transport, areas with potential for economic development, sports, and cultural infrastructure. Urban development funds also provide financing to increase energy efficiency in single-family residential buildings and student dormitories. Under “Regional Tourism”- Axis 6, tourism development projects and cultural heritage sites with national and world importance will be also funded.

The FI consists of loans with an interest-free period for maximum 36 months depending on the investment sector and the funded project, and a maturity of up to 20 years.

Within the Urban Development Fund, FMFIB will provide guarantees partially securing the credit risk of the co-financing part. To benefit from the guarantee, the financial intermediaries will have to provide co-financing for at least 40% of the total amount provided by the UDF for each investment project.

The agreement signed with EIB would also allow for potential combination of financing by FMFIB under the ESIF with additional EIB funding available under the European Fund for Strategic Investments (EFSI). This new Investment Platform would unlock additional sources of funding available as part of the Investment Plan for Europe as well as improve the attractiveness and enlarge the scope of the financial products for final recipients.

„With the financial instrument „Urban Development Fund” FMFIB aims to improve the access to financial resources in the regions, multiplying public resources by attracting private capital for investments creating economic growth” said Svetoslava Georgieva, CEO of Fund of Funds. 

The deadline for submission of applications by financial intermediaries is until December 29, 2017. 

Web link to the call documents:


Background information:

The EIAH offers a single point of entry to advisory and technical assistance services for investment projects in the EU, building on the expertise of the EIB Group, the European Commission, national promotional institutions and Member States’ managing authorities. It also aims to enhance cooperation with and between existing and newly established national promotional institutions.

The European Investment Bank is the long-term lending institution of the European Union and is owned by the EU Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

The Investment Plan for Europe focuses on strengthening European investments to create jobs and growth. It does so by making smarter use of new and existing financial resources, removing obstacles to investment, providing visibility and technical assistance to investment projects. The Investment Plan is already showing results. The projects and agreements approved for financing under the European Fund for Strategic Investments so far are expected to mobilise EUR 154 billion in total investments across 27 Member States and to support almost 377 000 SMEs. On 14 September 2016, the Commission proposed extending the EFSI by increasing its firepower and duration as well as reinforcing its strengths.