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

The Green for Growth Fund, Southeast Europe (GGF), a Germany-based fund that invests in energy efficiency and renewable energy sources, has disbursed a senior loan of EUR 2 million (USD  2.6 million) to Microinvest, a microfinance institution (MFI) in Moldova that was founded by Soros Foundation – Moldova, an affiliate of the US-based Open Society Foundations. Microinvest is expected to use the funds from this loan to provide loans to micro- and small enterprises (MSEs) in Moldova for energy efficiency projects.

As of 2012, Microinvest reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 27.6 million, a gross loan portfolio of USD 17.6 million and approximately 6,800 active borrowers. Microinvest does not accept deposits. As of December 31, 2013, GGF reported total assets of EUR 242 million (USD 326 million), a loan portfolio of EUR 170 million (USD 229 million) and profits of EUR 430,000 (USD 579,000).

By Tejas Jain, Research Associate

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. 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 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.

About Microinvest

Founded in 2003 by Soros Foundation – Moldova, a member of the US-based Open Society Foundations, Microinvest is a microfinance institution in Moldova. As of 2012, Microinvest reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 27.6 million, a gross loan portfolio of USD 17.6 million and approximately 6,800 active borrowers. Microinvest does not accept deposits.

Sources and additional resources:

[1] Information provided to MicroCapital by GGF, September, 2014

MicroCapital, August 22, 2014, Green for Growth Fund, Southeast Europe (GGF) Lends $20m to Yapi Kredi Leasing of Turkey to Support Use of Energy-Efficient Equipment

MicroCapital, July 25, 2014, AccessBank Azerbaijan Receives $15m Loan from Green for Growth Fund for Financing Energy-Efficient Projects

MicroCapital, May 21, 2014, Partner Microcredit Foundation (PMCF) of Bosnia and Herzegovina Borrows $5.5m from Green for Growth Fund (GGF) for Energy Efficiency Financing

MicroCapital Universe Profile: Green for Growth Fund, Southeast Europe (GGF)

MicroCapital Universe Profile: Microinvest

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

Similar Posts: