The EBRD is supporting production of climate-friendly, next generation all-electric commercial vehicles for the European market with a €650 million loan to Ford Otosan, US automaker Ford’s joint venture with Turkey’s Koc Holding. Ford Otosan is Europe’s leading commercial vehicle manufacturer. The agreement was signed on the day, when the European Commission published its plan to ban the sale of combustion engines by 2035.
The financing, shared by the EBRD and commercial lenders, is part of the Bank’s drive to fund the green transition and supports Ford’s aim of leading the electrification of the automotive industry for a climate-friendly, more sustainable future. Ford Otosan is Europe’s leading commercial vehicle manufacturer.
The financial package consists of a €175 million loan for the EBRD’s own account and €475 million in debt syndicated to other lenders under the Bank’s A/B loan syndication structure. Participating lenders include Akbank AG, Bank of China, BNP Paribas, Emirates NBD Bank (P.J.S.C.), Green for Growth Fund, HSBC, Industrial and Commercial Bank of China, Mediobanca, MUFG, QNB and Société Générale.
EBRD supports Greek Recovery and Resilience Plan
In a milestone agreement the government of Greece and the EBRD this week signed a €1 billion programme outlining the Bank’s support for the implementation of the country’s Recovery and Resilience Plan under the EU’s C:\Users\reiserea\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\7I2XGUYB\8https:\ec.europa.eu\info\business-economy-euro\recovery-coronavirus\recovery-and-resilience-facility_en (RRF). Charlotte Ruhe, Managing Director for Central and South Eastern Europe, and Theodoros Skylakakis, Alternate Minister of Finance of Greece, signed a Memorandum of Understanding (MoU) to this effect. The cooperation will focus on five priority areas: the green transition, digitalisation, export orientation, economies of scale and innovation (research and development).
The signing was covered by all major media outlets, such as Kathimerini in Greek and in English, Athens News Agency in Greek and in English, Naftemporiki, To Vima, Antenna, Capital.gr, Fortune Greece, Ta Nea and others.
EBRD President: “Green transformation is top priority”
In an interview with the leading Polish business daily Rzeczpospolita published this week, EBRD President Odile Renaud-Basso sets out the Bank’s approach to support the recovery following the Covid-19 pandemic: While “priorities are currently dictated by the extraordinary circumstances we find ourselves in”, she adds: “In the long run, my priority is to support, above all, the green transformation.”
The President stated that “Poland, like other countries in the region, has obviously made tremendous progress in the last few decades. […] At the same time, new challenges have emerged that the EBRD can help to solve. In the case of Poland, this is the structure of energy sources. Now, this is what our activity in Poland focuses on
Read the full interview (in Polish) here
Promoting renewables development in Uzbekistan
Taking the energy transformation of Uzbekistan to the next stage was the key goal of an international roundtable organised by the EBRD, the World Bank Group and the Uzbek government in a virtual format yesterday. Uzbekistan has embarked on an ambitious and far-reaching plan to reduce greenhouse gas emissions and eventually achieve carbon neutrality of the domestic energy sector by 2050.
Project signings and agreements
EBRD, EU and Austria support residential energy efficiency in Kosovo
More homeowners in Kosovo will be able to invest in domestic energy efficiency improvements thanks to a new €5 million credit line the EBRD is extending to Raiffeisen Bank Kosovo. The financing is part of a larger €135 million Green Economy Financing Facility (GEFF) programme for the Western Balkans, which supports energy-efficient solutions to build a greener and sustainable economy. The programme is co-financed by the European Union, the Western Balkans Investment Framework and the Austrian Federal Ministry of Finance.
Decarbonisation on the Greek power sector
Supporting the ambitious sustainability and decarbonisation targets of Public Power Corporation S.A. (PPC), Greece’s largest power producer and electricity supplier, the EBRD has invested €25.5 million in a sustainability-linked €500 million bond issued by the company. The issuance will help improve PPC’s access to finance by diversifying its financing sources to a new environmental, social and governance (ESG)-focused investor base.
Learn more here
EBRD and EU support vehicle inspection firm in Georgia
To reach more drivers, enhance road safety and encourage cleaner transport, Autotest, a Georgian vehicle inspection company, revamped its corporate branding and stepped up its social-media presence, with support from the EBRD and the European Union.
EBRD and EU support soap producer Arkadi in Greece
Through its Advice for Small Businesses programme in Greece, the EBRD, with support from the European Union, helped soap producer Arkadi to expand to new markets. Arkadi is an award-winning, woman-led company, that uses natural ingredients and has established a comprehensive recycling programme for packaging and other recyclable production materials.
EBRD and EU support women entrepreneurs in Morocco
The BEO events and communications agency was the very first client of the EBRD’s Women in Business programme in Morocco. The EBRD works with local partner financial institutions, such as Bank of Africa/BMCE Group, to provide female entrepreneurs with access to the finance they need to develop their businesses. They can also draw on the Advice for Small Businesses initiative, for example, on marketing, accounting or achieving quality certifications. The programme in Morocco is supported by the European Union under the EU Initiative for Financial Inclusion.
EBRD and Czech Republic support Green Cities in Ukraine
The West Ukrainian city Lviv has officially adopted its Green City Action Plan with support from the Czech Republic. Simultaneously, Lviv adopted an Integrated Development Concept until 2030, which ensures proper space planning and an action plan under the UNICEF-led Child and Youth Friendly Municipality Initiative.
EBRD in the news
Charlotte Ruhe, EBRD Managing Director for Central and South Eastern Europe, spoke to Kathimerini’s Money Review and Euro2day on the EBRD’s support for the Greek economy and the Bank’s role in the implementation of the EU’s RRF.
EBRD Lead Regional Economist, Roger Kelly, spoke to the Reuters news agency about the state of the Turkish economy. He said: "On the political side, since 2013, there is a sense that Turkey and the West have been drifting apart. Yes, we have seen a deterioration since 2013, but we have to see it in the context of the positive steps that happened before that."
The leading Dutch business daily Het Financieele Dagblad reported on the challenges the coronavirus poses for countries such as Poland and quoted EBRD President Odile Renaud-Basso as saying: “The high level of skills and education make countries like Poland, Hungary or Romania attractive for investors.”
Read the full article (in Dutch) here
EBRD in social media
EBRD President Odile Renaud-Basso addressed the G20 International Conference on Climate Change in Venice.
Lviv officially adopted its Green Action Plan.
Pierre Heilbronn was at the W20 Rome Summit discussing the importance of supporting women entrepreneurs.
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