MICROCAPITAL BRIEF: Green for Growth Fund Southeast Europe, FMO, Fibabanka Invest in Energy-Efficient Businesses

Green for Growth Fund Southeast Europe (GGF), a Luxembourg-based foundation that finances environmentally sustainable enterprises, along with the Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO), a Dutch development bank, recently entered a joint agreement to provide Turkish bank Fibabanka with a credit line of EUR 40 million (USD 50 million) for on-lending to businesses for efforts that have plans to become more energy-efficient.

Fibabanka’s recently launched energy-efficient lending program primarily comprises disbursing credit to companies that are part of the tourism and manufacturing industries. Fibabanka has set a goal of reducing energy consumption by 84,000 megawatt-hours and carbon dioxide emissions by 18,600 tons per year.

As of 2014, GGF operates in 13 countries in Southeast Europe. GGF reported total assets of EUR 242 million (USD 326 million), a gross loan portfolio of EUR 170 million (USD 229 million) and net profit of EUR 430,000 (USD 579,000) as of December 31, 2013. Fibabanka has 50 branches and as of 2011 — the latest date for which such data is available – had EUR 725 million (USD 908 million) in total assets.

By Emily Teleposky, Research Associate

About Green for Growth Fund (GGF):
Luxembourg-based Green for Growth Fund, Southeast Europe (GGF) focuses on extending the use of renewable energy sources and enhancing energy efficiency in Southeast Europe. GGF finances and refinances energy efficiency initiatives and invests in small to medium-scale renewable energy projects. Furthermore, GGF offers technical support and funding to local financial institutions. 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 2014, GGF operates in 13 countries: Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Croatia, FYR Macedonia, Georgia, Kosovo, Moldova, Montenegro, Serbia, Turkey and Ukraine. GGF reported total assets of EUR 242 million (USD 326 million), a gross loan portfolio of EUR 170 million (USD 229 million) and a profit of EUR 430,000 (USD 579,000) as of December 31, 2013.

About Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO):
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) is a Dutch development bank that was founded in 1970. It supports financial institutions and governments through loans, guarantees and other investment promotion activities including local-currency investments. FMO is owned by the Dutch government, which holds a 51-percent stake, alongside commercial banks, trade unions, employers’ associations and individual investors. In 2013, FMO reported total assets of EUR 6.2 billion (USD 8 billion) as well as placing new investments valued at EUR 1.5 billion (USD 2 billion) during the year.

About Fibabanka AS:

Fibabanka is a Turkish commercial bank that operates 50 branches in the country. It was originally named Millennium Bank A.S., but in 2011 changed its name to Fibabanka A.S. The bank is a subsidiary of Fiba Holding A.S. In April 2011 — the latest date for which information is available — its total asset size was approximately EUR 725 million (USD 908 million).

Sources and Additional Resources

[1] GGF and FMO Partner to Support Fibabank’s EE Lending Business, http://www.ggf.lu/media/public/pdfs/press-releases/2014/2014-10-ggf-and-fmo-partner-to-support-fibabankas-ee-lending-business.pdf

[2] MICROCAPITAL BRIEF: Green for Growth Fund, Southeast Europe (GGF) Lends $2m to Microinvest of Moldova for On-Lending to Micro-, Small Enterprises (MSEs), September 24, 2014, 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/

[3] MICROCAPITAL BRIEF: Kompanion Financial Group of Kyrgyzstan Receives Syndicated Loan of $12m from European Bank for Reconstruction and Development (EBRD), Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO), January 29, 2014, https://www.microcapital.org/microcapital-brief-kompanion-financial-group-of-kyrgyzstan-receives-syndicated-loan-of-12m-from-european-bank-for-reconstruction-and-development-ebrd-nederlandse-financierings-maatschappijvoor-on/

[4] MICROCAPITAL BRIEF: European Bank for Reconstruction and Development May Offer $40m in Subordinated Debt to Turkey-based Fibabanka, June 10, 2014, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-may-offer-40m-in-subordinated-debt-to-turkey-based-fibabanka/

[5] MicroCapital Universe Profile: Green for Growth Fund, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Green+for+Growth+Fund

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