The provision of a senior unsecured loan of up to € 3 million to be provided to KEP Trust (KEP) in three equal tranches under the Western Balkans Green Economy Financing Facility II (WB GEFF II).
The facility will support investments in high-performance green technologies, materials and solutions undertaken in privately-owned residential dwellings or buildings. Sub-projects will be selected according to technical and financial eligibility criteria set forth in the Policy Statement for WB GEFF II. 100 per cent of the use of proceeds will be related to Green Economy Transition investments.
ETI score: 80
The project contributes to the overall objectives of WB GEFF II, supporting the Green and Competitive TI quality.
Green: The project will contribute towards building a green economy by facilitating the expansion of lending for investments into high performance residential green economy technologies.
Competitive: The project will contribute towards building a more competitive financial sector by building the capacity of the Partner Financial Institutions (PFIs) for financing green economy projects.
KEP is the largest microfinance institution in Kosovo, established as a non-governmental organisation. KEP was founded in August 1999 by the Swiss humanitarian organisation International Catholic Migration Commission and by the Prizren Business Club. KEP services around 23 thousand customers throughout the country with its 31 branches and 244 employees.
EBRD Finance Summary
Total Project Cost
Additionality is achieved by combining the necessary long-term financing via KEP with TC and investment incentives into a package that promotes residential green economy investments in Kosovo.
Environmental and Social Summary
Categorised FI (2019 ESP). KEP is an existing client and has provided satisfactory Annual E&S Reports to the Bank to date. KEP will be required to continue to implement the environmental and social risk management procedure for micro, SME and corporate loans as well as the specific environmental and social eligibility criteria for renewable energy projects as applicable. KEP will be required to continue to comply with the EBRD's Performance Requirements (PRs) 2, 4 and 9, including adherence to the expanded the EBRD E&S Exclusion List and Referral List introduced with ESP 2019 and submit Annual E&S Reports to the Bank. Sub-borrowers financed through KEP's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.
Potential renewable energy investments under the GEFF framework will have to follow the E&S eligibility criteria for such investments (solar, wind, geothermal, bioenergy or hydro power, as the case may be). The Project's actual use of proceeds may include solar sub-projects. Such sub-projects will be managed in line with 'The Proposed Management Approach for Solar Supply Chain Risk Management' (CS/FO/21-35) and any subsequent guidance developed under that approach.
Technical Cooperation and Grant Financing
TC: €2.965 million have been set for TC support at the Facility level. The TC is essential to supporting the preparation, implementation and monitoring of the Facility. The TC fund for the proposed transaction is sourced from the the EBRD Shareholders Special Fund (SSF) and the Government of Austria.
Non-TC: €0.6 million (for this project) for investment incentives to sub-borrowers for the implementation of eligible sub-projects in line with the Policy Statement. Grant funds are provided by the European Union through the Western Balkans Investment Framework.
TC project with EBRD's Advice for Small Business (ASB): As a separate project, KEP is expected to receive grant assistance of up to €16 thousand from ASB to support them with implementing their new digital strategy.
Company Contact Information
+383 38 245 011
PSD last updated
10 Dec 2021
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
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