UniCredit S p A : Bulbank customers to benefit from discounts on energy efficient mortgages

• UniCredit Bulbank offers discounts on interest rates for high energy efficiency class properties mortgage loans
• Sustainability is an important aspect of the new products and services of the bank

UniCredit Bulbank's customers have the opportunity to benefit from preferential terms and conditions for mortgage lending on high energy efficiency class properties, experts of the bank have commented during an online press conference focused on the opportunities in the mortgage market.

'UniCredit Bulbank is a company committed to doing the right thing for everyone it works with. For us, this means doing sustainable and transparent business and supporting and initiating ESG activities. ', commented Teodora Petkova, the CEO of UniCredit Bulbank.

Giacomo Volpi, the Head of the Bank's Retail Banking Division, also took part in the press conference. His comments were on the topic of UniCredit's green lending across the CEE region. Giacomo Volpi explained that for 2020, around 11% of the total loan volume of UniCredit in Retail Banking in the region were part of the so-called green lending, where nearly 90% of this volume represent mortgage funding to private individuals.

'The digitalisation of UniCredit Bulbank also fosters the preservation of the environment, as it reduces the use of paper and limits air pollution generated by the use of transport for visiting the branches', added the Head of Retail Banking of UniCredit Bulbank, also mentioning the fully digital services of the bank: remote service, consultations and the possibility for electronic signing of documents; the possibility to become a customer of the bank entirely remotely via Bulbank Mobile; fast and easy payment of utility bills; payment with a phone via Apple pay or a digital wallet, etc.

During the press conference, Lyudmil Tsokov, who is a Senior Manager in Products and Processes Unit for private individuals at UniCredit Bulbank explained that the bank's green mortgage is available to private individuals and SMEs. The product allows customers to use a discount on interest rates when buying a property in a building with an energy efficiency class 'A' or higher. The energy efficiency class is indicated on the energy certificate, which every building built after 2010 has. The certificate can be obtained from the developer, the municipality in the relevant location and the building's technical passport .

Lyudmil Tsokov gave specific examples, explaining that for a mortgage loan of 150 thousand BGN with a term of 30 years, customers can save up to 5760 BGN, which is equal to 6 and a half less monthly installments or 5% less costs for the client. This possibility is available also to SMEs and the bank offers reduced requirements for collaterals, as well as an option for guarantee instruments. For business entities, for an average amount of the loan of 100,000 BGN with a term of 5 years, the discount on the interest rate is 2,569 BGN, which is 17.5% less cost to the customer.

The Senior Manager in Products and Processes - Private Individuals Unit in UniCredit Bulbank outlined the profile of the customer who uses a mortgage loan:

These are mostly men, with the percentage being 62% for men against 38% for women. 56% are married and 60% do not have children. According to the bank's data, 70% of the disbursed mortgage loans are long term and are for homes in the big cities - Sofia, Plovdiv, Varna and Burgas. 50% of the customers with a mortgage loan are aged between 25 and 35.

'At UniCredit Bulbank we believe that banks, through the products and conditions they offer, can influence the trends in customer demand. This is why thanks to green mortgages, we promote consumption with an eye to the future ', explained Lyudmil Tsokov.