A senior unsecured loan of up to EUR 2 million provided in two equal tranches under the Western Balkans Green Economy Financing Facility (WB GEFF). The second tranche is uncommitted and its commitment will be at EBRD's sole discretion.
The transaction supports investments in high-performance energy efficiency technologies, materials and solutions undertaken in, or in relation to, privately-owned residential dwellings or buildings ("sub-projects") in Kosovo. Sub-projects are selected according to technical and financial eligibility criteria set forth in the policy statement for WB GEFF. 100% 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, 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 and positive demonstration effects of green economy projects.
Competitive: The project will contribute towards building a more competitive financial sector through developing the internal capacity of partner financial institutions for financing green economy projects.
AGENCY FOR FINANCE IN KOSOVO
Agency for Finance in Kosovo ("AFK") is the fourth largest microfinance institution ("MFI") in Kosovo, organized as a non-governmental organisation ("NGO"). Its establishment was financed from contributions received through Mercy Corps, a US-based NGO. Operating since October 2000, AFK provides access to finance to micro and small entrepreneurs, especially in the rural areas.
EBRD Finance Summary
Total Project Cost
Additionality is achieved by combining the necessary long-term financing, in the form of a senior loan, with technical support and targeted investment incentives into a package that promotes residential green economy investments in Kosovo.
Environmental and Social Summary
Categorised FI (ESP 2019). AFK is an existing client and will be required to continue to comply with PRs 2, 4 and 9, implement the EBRD's E&S Risk Management Procedures for Corporate, SME and Micro Loans including adherence to the expanded EBRD E&S Exclusion List and Referral List introduced with ESP 2019 and submit annual E&S reports to the Bank. As per the WB GEFF, due to the nature of the project targeting the residential sector and a streamlined approval structure, all sub-projects compliant with the Technology Selector will be automatically eligible (with the exception of sub-loans to service providers, vendors, producers). Sub-loans to service providers, vendors, producers will undergo a review by the Project Consultant and will be checked against the GEFF eligibility requirements. All sub-projects will need to comply with applicable national environmental, social, health and safety laws.
Technical Cooperation and Grant Financing
TC: EUR 5.1 million for the overall Facility to support the preparation, implementation and monitoring of WB GEFF. AFK has in principle agreed to share up to 15% of TC costs that benefit them directly. Type of contribution will be defined in the Loan Agreement. Exact amount to be defined during project implementation. Grant resources are provided by the Republic of Austria and the multi-donor funded Western Balkans Investment Framework to fund TC programme under the GEFF.
Non-TC: EUR 410,500 (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.
TC project with EBRD's Advice for Small Business (ASB): As a separate project, AFK is expected to receive grant assistance of up to EUR 30k from ASB to support them with strategy and business planning.
Company Contact Information
+383 39 424 242
Agjencioni për Financim në Kosovë (AFK) Lidhja e Prizrenit No.1 Peje Republic of Kosovo
PSD last updated
11 Jun 2021
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