MICROCAPITAL BRIEF: International Finance Corporation (IFC) Invests $30.5m in Green for Growth Fund, SMEs To Benefit

The International Finance Corporation, a member of the World Bank Group, will reportedly invest EUR 25 million (equivalent to USD 30.5 million) in the Green for Growth Fund, Southeast Europe (GGF), a fund founded in December 2009 that “provides refinancing to financial institutions for on-lending to small and medium-sized enterprises (SMEs) and private households for financing energy efficiency projects.” The purpose of the investment is to “stimulate financing of energy efficiency and renewable energy projects in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, Kosovo, FYR Macedonia, Montenegro, Serbia and Turkey” [1].

According to Edward Strawderman, IFC Senior Manager, “This investment signals our confidence in the Green for Growth Fund and will focus investor attention on renewable energy and energy efficiency, an area which remains relatively new in Southeast Europe” [1].

Green for Growth Fund’s goal is reportedly to “increase the Fund volume to EUR 400 million over the course of four to five years, particularly through the acquisition of private investors by using a tiered risk-sharing structure” [1]. There is no financial information available on the Fund.

By Julia Korn, Research Associate

About The International Finance Corporation (IFC):

A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees with the intent of alleviating poverty. It invests in financial institutions and other companies in emerging markets as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, its new investments totaled USD 14.5 billion.

About The Green for Growth Fund, Southeast Europe:

The Green for Growth Fund, Southeast Europe, formerly known as Southeast Europe Energy Efficiency Fund, was initiated by the European Investment Bank and KfW (the German Development Bank) in December 2009. Its goal is to increase energy efficiency and foster renewable energies in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo, Montenegro, Serbia and Turkey. It is privately managed by Oppenheim Asset Management Services. There is no financial information available on the Fund. Its investment advisor is Finance in Motion, a development finance firm with reported committed capital of EUR 800 million (equivalent to USD 982 million).

Sources and Additional Resources:

[1] The International Finance Corporation. “IFC Supports Southeast Europe Sustainable Energy Investments through Green for Growth Fund” http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/570711E118EA00E38…

MicroCapital Universe. The International Finance Corporation (IFC). https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Int…

MicroCapital Universe. The Green for Growth Fund, Southeast Europe. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The…

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