MICROCAPITAL BRIEF: Green for Growth Fund Announces $1.1m Senior Loan to Kosovar Microfinance Institution AFK to Reduce Energy Consumption in Homes, Businesses

The Green for Growth Fund (GGF), a Luxembourg-based investment vehicle that supports energy-efficiency (EE) initiatives in Eurasia and North Africa, recently announced a senior loan in the amount of EUR 1 million (USD 1.1 million) for Agjencioni për Financim në Kosovë (AFK), a non-banking microfinance institution operating in Kosovo. AFK will on-lend the funds to micro- and small enterprises (MSEs) as well as individual borrowers in rural communities for measures aimed at lowering energy consumption and emissions. GGF will also provide AFK with technical assistance to support the implementation of EE initiatives.

As of March 2016, GGF operates in 19 markets: Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Croatia, Egypt, FYR Macedonia, Georgia, Jordan, Kosovo, Lebanon, Moldova, Montenegro, Morocco, Serbia, the Palestinian Territories, Tunisia, Turkey and Ukraine. As of the same month, GGF reported total investor commitments of EUR 376 million (USD 420 million) and an investment portfolio of EUR 311 million (USD 346 million).

As of 2015, AFK reported total assets of USD 15.4 million, a gross loan portfolio of USD 14 million and 10,000 active borrowers. AFK does not accept deposits.

By Michelle Dold, Research Associate

About Green for Growth Fund

The Luxembourg-based Green for Growth Fund (GGF) focuses on extending the use of renewable energy sources and enhancing energy efficiency in Southeast Europe, the Middle East and North Africa. GGF offers technical support and funding to local financial institutions to finance and refinance energy efficiency initiatives and invest in small to medium-scale renewable energy projects. 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 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 March 2016, GGF operates in 19 markets: Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Croatia, Egypt, FYR Macedonia, Georgia, Jordan, Kosovo, Lebanon, Moldova, Montenegro, Morocco, Serbia, the Palestinian Territories, Tunisia, Turkey and Ukraine. As of the same date, GGF reported total investor commitments of EUR 376 million (USD 420 million) and an investment portfolio of EUR 311 million (USD 346 million).

About Agjencioni për Financim në Kosovë (AFK)

Agjencioni për Financim në Kosovë (AFK) was founded by Mercy Corps, a US-based nonprofit organization, in 2000 with the goal of helping low-income individuals recover from the Kosovo War. AFK has since become independent of Mercy Corps. It is headquartered in Peja City and has 17 additional branches in Kosovo. From 2000 to 2016, AFK disbursed 65,000 loans totaling EUR 121 million (USD 133 million). As of 2015, it reported total assets of USD 15.4 million, a gross loan portfolio of USD 14 million and 10,000 active borrowers. AFK does not accept deposits.

Sources and Additional Information:

[1] GGF Press Release: “GGF Partners with AFK to Support Green Finance in Kosovo”

[2] MicroCapital Universe Profile: Green for Growth Fund (GGF)

[3] MicroCapital Universe Profile: Agjencioni për Financim në Kosovë (AFK)

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