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- EBRD issues green loan to NLB Banka Sarajevo
- Funds provided under the Western Balkans Green Economy Financing Facility
- On-lending supported by the European Union in the form of technical cooperation and incentive grants
The European Bank for Reconstruction and Development (EBRD) is providing a €2 million loan to NLB Banka Sarajevo for on-lending in support of green investment in Bosnia and Herzegovina – the first time that the latter has received green financing from the EBRD.
The loan is being issued under the third phase of the EBRD’s flagship Western Balkans Green Economy Financing Facility (GEFF).* The proceeds will support NLB Banka’s evolving sustainability commitments by enabling it to finance gender-responsive green investment projects carried out by the residential sector (individual residents, housing collectives and housing management companies, service providers, producers and vendors of green technologies and materials, and construction companies) and the public sector.
The loan will be accompanied by grant incentives funded by the European Union (EU), with households able to access grants of up to 20 per cent of their loan amounts on successful completion of their green investments.
Stela Melnic, the EBRD’s Head of Bosnia and Herzegovina, said: “We’re proud to support NLB Banka Sarajevo with green financing that helps Bosnia and Herzegovina move towards a cleaner, more sustainable future. This initiative will fund projects that make homes and public buildings more energy efficient and environmentally friendly. Through the Western Balkans GEFF III REpower Programme, we’re working with local partners to bring real benefits to communities and promote growth that is inclusive and climate-resilient.”
Lidija Žigić, the CEO of NLB Banka Sarajevo, said: “Partnering with the EBRD on our green financing facility marks a decisive step in accelerating NLB Banka’s sustainability agenda in Bosnia and Herzegovina. This financing will strengthen our role in driving the country’s green transition by enabling households, housing collectives, construction companies and public institutions to invest in energy-efficient and renewable technologies. We see this cooperation as an investment in a future that is cleaner, more resilient and economically competitive. Together, we are empowering communities to reduce energy consumption, lower costs and contribute to a greener Western Balkans.”
Berin Lakomica, the CMO of NLB Banka Sarajevo, added: “The GEFF III REpower Programme brings tangible value to our clients by making green investments more accessible and more affordable. Through attractive financing conditions and EU-backed incentives of up to 20 per cent, households can modernise their buildings, improve energy efficiency and adopt renewable technologies with a significantly reduced financial burden. Demand within the residential segment is already strong, especially among individuals. With this programme, we are broadening the market for green technologies and supporting customers on their path towards smarter, more sustainable living.”
NLB Banka Sarajevo is a universal commercial bank that serves retail, SME, corporate and public-sector clients in the Federation of Bosnia and Herzegovina and the Brčko District through its network of 34 business units.
The EBRD has invested more than €3.4 billion in 254 projects in Bosnia and Herzegovina since it began operating there in 1996. The Bank’s strategic priorities in the country are to promote the green economy, support the competitive development of the private sector and foster regional integration.
* The GEFF programme is co-funded by the EU, Austria, Japan and Denmark, and by Austria and Switzerland through the EBRD’s High-Impact Partnership on Climate Action (HIPCA).
HIPCA is supported by Austria, Canada, Finland, Germany, the Netherlands, South Korea, Spain, Switzerland, TaiwanICDF, the United Kingdom and the United States of America.