The Urban Development Funds under Priority Axis 6 support investments in cultural heritage sites of national or global significance. The instrument is structured as risk-sharing loans combined with embedded portfolio guarantees, designed to offer more flexible financing solutions for project developers. In addition, the financial instrument was structured in combination with grant funding from Operational programme “Regions in Growth” 2014-2020 in two operations, allowing certain projects to benefit from both repayable and non-repayable support. To strengthen the impact of public resources from FoF and attract private capital, the financial intermediaries have provided 41% co-financing with private funds for each investment project supported through the Urban Development Fund (UDF).
The main objective of using financial instruments under Priority Axis 6 was to finance viable investment projects which, although economically sound, could not fully secure market-based funding. These projects were expected to deliver positive economic returns and contribute to sustainable regional development.
| Competition theme: Constructive collaboration Submitting organisation: Sustainable Cities Fund: Fund of Funds in Bulgaria Type of authority: Public-private financial intermediary: Fund of Funds Financial instrument name: Urban Development Fund – Priority Axis 6 |
| Country: Bulgaria Funding source: ERDF Type of financial product: Loan Financial size: EUR 299 000 000 (EUR 15 000 000 Priority Axis 6) |
