The European Bank for Reconstruction and Development (EBRD) is supporting energy efficiency and the use of renewable energy in Serbia with a loan of up to €10 million to Komercijalna Banka for on-lending to private and municipal borrowers.
The aim of the loan is to support energy efficiency projects in commercial building and industrial sectors, as well as small renewable energy and energy conservation projects in companies and municipal buildings through on-lending to local borrowers.
Improving energy efficiency and increasing the use of renewable energy are effective responses to the rising energy prices in Serbia. With this financing the EBRD is raising awareness on the benefits of energy conservation and helping to overcome existing market barriers to sustainable energy investments through the provision of longer-term funding.
The funding is extended under the Western Balkans Sustainable Energy Financing Facility II (WeBSEFF II), a €75 million framework designed to provide credit lines to local banks for on-lending to private and municipal borrowers for energy efficiency and renewable energy investments.
Additional financing is being provided by the European Union and the EBRD Shareholder Special Fund.
“We are pleased to join forces with Komercijalna Banka to promote sustainable energy investments in Serbia. This credit facility is a new product for Komercijalna Banka, and therefore will mark a new phase in our long-standing relationship. This is an important step towards raising awareness of the benefits of energy conservation, one of the focus areas for the EBRD’s work in Serbia,” said EBRD Director for Serbia, Matteo Patrone.
“With the EBRD’s loan we can continue to explore new segments in the market. This new credit line will give us additional funding to raise awareness of sustainable energy use and thus help to diversify the underserved segments in the market,” added Deputy President of the Executive Board of Komercijalna Banka, Dragan Santovac.
Since the start of its operations in Serbia, the EBRD has invested more than €3.8 billion in over 181 projects. The Bank has invested in the financial sector, industry, commerce, agribusiness, energy and infrastructure.