EBRD partners with UniCredit to finance energy efficiency in Romania’s residential sector

By Olga Rosca
@olgarosca

EBRD partners with UniCredit to finance energy efficiency in Romania’s residential sector

(l-r) Philipp Gamauf, CFO UniCredit Bank Romania, Giovanni Scotto Di Freca,  Head of ALM UniCredit Bank Romania, Marco Cravario, Deputy CEO UniCredit Bank Romania, Matteo Patrone, Director, Regional Head Romania and Bulgaria EBRD, Johannes Busse, Associate Banker, Financial Institutions EBRD, Borislav Genov, CEO UniCredit Consumer Financing Romania

Loan of up to RON 206 million under Green Economy Financing Facility

The EBRD is extending its support for energy efficiency investments in Romania’s residential sector through a loan of up to RON 206 million (€45 million equivalent) to UniCredit Bank Romania SA and UniCredit Consumer Financing IFN SA.

The funds will be on-lent to households seeking to invest in energy efficiency improvements (such as heating, water and electricity, as well as additional building enclosures such as walls, windows and roofs) for their homes, and expanding the availability of green solutions for the residential sector.

Technical assistance is provided through grants by the Global Environment Facility and the EBRD Shareholder Special Fund.

TaiwanICDF - International Cooperation and Development Fund  will contribute up to RON 29 million (€6.3 million equivalent) as concessional financing.

Matteo Patrone, EBRD Regional Director for Romania and Bulgaria, said: “We are pleased to join forces with UniCredit and are confident that we can leverage our partner’s extensive branch network and expertise in energy efficiency financing to reach households throughout Romania. In the residential sector, there is significant room for improvement and we are proud to offer the market this unique combination of financial and technical tools to achieve green goals.”

Lucyna Stanczak-Wuczynska, EBRD Director for EU banks, added: “This new transaction is part of our strategy to scale up financing for energy efficiency investments in Romania and other countries where the EBRD invests. Our experience has proved that continued investment in energy efficiency makes an important contribution towards a more sustainable, ‘green’ economy as well as clear business and economic sense. We are pleased to have UniCredit by our side in this effort.”

Septimiu Postelnicu, Head of Retail Division UniCredit Bank, said: “We are very pleased to have concluded this agreement with our longstanding partners from the EBRD, by which we reiterate our interest and willingness to support energy efficiency projects in the Romanian residential sector. The loan we access as part of this new agreement will allow us to increase our role in supporting the development of a green economy in Romania.”

This is the second loan under the new EBRD Green Economy Financing Facility (GEFF). Launched earlier in 2017 with a total volume of up to €100 million, it is designed to help Romanian households invest in energy efficiency measures and renewable energy. Loans are provided via local partner financial institutions.  

The EBRD has channelled some €4 billion in green financing through similar programmes in 24 countries to date.

GEFF is part of the EBRD’s Green Economy Transition approach, under which the Bank aims to dedicate 40 per cent of its annual investments to climate finance by 2020.

In 2017, the EBRD has invested over €525 million in 26 projects in Romania and will reach almost €8 billion in cumulative investments in the country by the end of the year.