Green for Growth Fund - A shares

Location:

Regional

Project number:

47048

Business sector:

Non-depository Credit (non bank)

Notice type:

Private

Status:

Cancelled

PSD disclosed:

06 Nov 2014

Project Description

The EBRD is considering an investment in Green for Growth Fund, Southeast Europe to support its expanding activities. The Fund provides senior, subordinated and mezzanine finance to the Energy Efficiency sector in the Western Balkans, Turkey, Ukraine, Moldova and the Caucasus. The Fund is operating in cooperation with the European Commission and other investor IFIs (EIB, KfW, IFC, OeEB and FMO).

Transition Impact

The Project is expected to have the following sources of transition impact:

Market expansion in sustainable energy finance
The Fund is contributing to the increase in availability, and therefore access to sustainable energy finance in the region of operations and allows companies to make energy efficiency (EE) investments that contribute to reduced pollution, climate change mitigation, reduced energy bills, increased energy security and comfort levels.

Demonstration effects of improved EE among sub-borrowers: the Fund is demonstrating the benefits of energy conservation and promoting the expansion of EE and renewable energy (RE) lending in the energy inefficient Western Balkans, Turkey, Ukraine, Moldova and the Caucasus. It creates positive demonstration effects particularly with respect to utilising financial intermediaries for investments resulting in rational energy use.

Transfer of skills: The GGF’s activities result in growing volume of sustainable energy financing available to the regions of operations, helping reach a sufficient mass to continue the long-term transformation of the lending market in this sector. GGF is also working to transfer and build additional expertise related to sustainable energy investment among banks, particularly in the area of assessing the risk and creditworthiness of clients for EE loans.

The Client

Green for Growth Fund, Southeast Europe is an investment company organised under the laws of the Grand Duchy of Luxembourg. The Fund was established in December 2009 by EIB and KfW with aim to broaden the financing base of Energy Efficiency and Renewable Energy investments in Southeast Europe. The mandate of the Fund was extended to Ukraine, Moldova and the Caucasus in 2012.

EBRD Finance

Equity investment of up to EUR 25 million in A shares.

Project Cost

EUR 25 million.

Environmental Impact

Categorised FI: GGF is in compliance with performance requirements (PRs) 2 and 9. The Fund has developed its own environmental and social policy which is in line with the EIB Statement on Environmental and Social Principles . The Policy was reviewed and approved by ESD at the time of establishment of the Fund. GGF has submitted satisfactory Annual Environmental and Social reports to the Bank. The Fund will be required to continue to comply with the Bank’s E&S requirements for this transaction.

Technical Cooperation

None.

Company Contact

Michalis Kiourktsoglou
E-mail: kiourktm@ebrd.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Text of the PIP

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