TIRANA (Albania), November 21 (SeeNews) – The Green for Growth Fund, Southeast Europe (GGF) and the Netherlands Development Finance Company (FMO) have signed a 25 million euro ($32 million) investment that will significantly leverage GGF’s public donor funding, GGF and FMO said on Wednesday.
The move, which brings the fund’s committed capital to 191 million euro, will broaden the funding base for energy efficiency (EE) and renewable energy (RE) projects in the GGF’s target region, including providing crucial capital to support the fund’s recent expansion into the European Neighborhood Region (ENR), GGF and FMO said in a joint press release.
FMO's investment is in the fund’s A Share (20.6 million euro) and B Share (4.6 million euro) tranches.
In terms of maximizing development impact, the investment will enable GGF to finance more than one thousand additional EE and RE loans to households, micro, small and medium enterprises (MSMEs) and corporate borrowers, reducing carbon emissions by an estimated 23,200 tonnes of CO2 annually by 2015.
Since its inception, the GGF has invested 94 million euro in its partner institutions, financing EE/RE subloans with an aggregate value of 68.9 million euro as at September 30.
The Green for Growth Fund, Southeast Europe was initiated in 2009 by the German Development Bank KfW and the European Investment Bank with the financial support of the European Commission and the European Bank for Reconstruction and Development.
It is dedicated to enhancing energy efficiency and fostering renewable energies in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, Macedonia, Kosovo, Montenegro, Serbia and Turkey as well as in the nearby European Eastern Neighborhood region comprised of Armenia, Azerbaijan, Georgia, Moldova and Ukraine.
The Netherlands Development Finance Company is the bilateral private sector development bank of the Netherlands.
($=0.7812 euro)
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