MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Considers $31m Investment in Green for Growth Fund (GGF) for Energy-Efficiency Financing

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral financial institution, is in the final stage of considering an investment totaling EUR 25 million (USD 31 million) in The Green for Growth Fund, Southeast Europe (GGF), a Germany-based fund that invests in energy efficiency (EE) and renewable energy sources. EBRD expects that the investment would promote expansion of the market for financing sustainable energy by demonstrating the benefits of energy efficiency to customers and by enhancing expertise in sustainable energy finance among lenders in the target region. EBRD expects to decide whether it will commit to the investment around December 10, 2014.

In 2013, EBRD had total assets of EUR 49 billion (USD 65 billion) and invested a total of EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries. As of 2014, GGF operates in 13 countries: Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Croatia, Former Yugoslav Republic of Macedonia, Georgia, Kosovo, Moldova, Montenegro, Serbia, Turkey and Ukraine. GGF reported total assets of EUR 242 million (USD 326 million), a loan portfolio of EUR 170 million (USD 229 million) and profits EUR 430,000 (USD 579,000) as of December 31, 2013.

By Ananya Tiwari, Research Associate

About the European Bank for Reconstruction and Development (EBRD)
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 64 countries as well as the European Investment Bank and the European Union as of 2014. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries.

About Green for Growth Fund, Southeast Europe (GGF)
Luxembourg-based Green for Growth Fund, Southeast Europe (GGF) focuses on expanding the use of renewable energy sources and enhancing energy efficiency in southeastern Europe. It does this by financing and refinancing energy-efficiency initiatives and investing in small to medium-scale renewable energy projects. Furthermore, GGF offers technical support to local financial institutions working or seeking to work in the energy finance arena. GGF was established in 2009 by Germany’s Kreditanstalt für Wiederaufbau (KfW) and the Luxembourg-based European Investment Bank (EIB) with the financial support of the following organizations: EU’s European Commission, the German Federal Ministry for Economic Cooperation and Development (also known by its German acronym BMZ), and the European Bank for Reconstruction and Development (EBRD). As of 2014, GGF operates in 13 countries: Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Croatia, Former Yugoslav Republic of Macedonia, Georgia, Kosovo, Moldova, Montenegro, Serbia, Turkey and Ukraine. GGF reported total assets of EUR 242 million (USD 326 million), a loan portfolio of EUR 170 million (USD 229 million) and profits EUR 430,000 (USD 579,000) as of December 31, 2013.

[1] EBRD Press Release, http://www.ebrd.com/pages/project/psd/2014/47048.shtml

MicroCapital, November 8, 2014, “Green for Growth Fund, Southeast Europe (GGF) Lends $5m to Muganbank of Azerbaijan for On-Lending to Micro-, Small and Medium-Sized Enterprises (MSMEs) for Energy Efficiency Projects” https://www.microcapital.org/microcapital-brief-green-for-growth-fund-southeast-europe-ggf-lends-5m-to-muganbank-of-azerbaijan-for-on-lending-to-micro-small-and-medium-sized-enterprises-msmes-for-energy-efficiency-projec/

MicroCapital, September 24, 2014, “Green for Growth Fund, Southeast Europe (GGF) Lends $2m to Microinvest of Moldova for On-Lending to Micro-, Small Enterprises (MSEs)” https://www.microcapital.org/microcapital-brief-green-for-growth-fund-southeast-europe-ggf-lends-2m-to-microinvest-of-moldova-for-on-lending-to-micro-small-enterprises-mses/

MicroCapital, October 29, 2014, “European Bank for Reconstruction and Development (EBRD), Turkish Government Launch “Finance and Advice to Women in Business” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-turkish-government-launch-finance-and-advice-to-women-in-business/

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

MicroCapital Universe Profile: Green for Growth Fund, Southeast Europe (GGF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Green+for+Growth+Fund

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