SOFIA (Bulgaria), March 17 (SeeNews) – The German GLS Bank is investing 22 million euro ($23.3 million) in the Green for Growth Fund, Southeast Europe (GGF), to be used to finance energy efficiency and small-scale renewable energy projects for businesses and households within the Southeast Europe and the European Eastern Neighbourhood regions, GGF said on Wednesday.
The GGF’s target countries, including Albania, Bosnia and Herzegovina, Croatia, Macedonia, Kosovo, Montenegro, Serbia, Turkey, Armenia, Azerbaijan, Georgia, Moldova and Ukraine, are characterised by rising energy demand and a mostly obsolete energy infrastructure; in most countries energy is produced primarily from coal and gas-fired power plants, GGF said in a press release.
The 22 million euro investment brings the total private capital in GGF to 28.5 million, accounting for almost 10% of total funding, GGF said, adding that GLS Bank will retain 5 million euro on its own books.
“The GGF is very pleased to have GLS as an investor," Christopher Knowles, chairman of the board of directors of the Green for Growth Fund, Southeast Europe, said.
"GLS Bank’s strong reputation in sustainable investments makes them a perfect and natural partner for the GGF,” Knowles added.
The Green for Growth Fund, Southeast Europe, is dedicated to enhancing energy efficiency and fostering the use of renewable energy sources in Southeast Europe and in the nearby European Eastern Neighbourhood region. It provides refinancing to financial institutions for on-lending to enterprises and private households seeking to finance energy efficiency projects. The fund also invests directly in small to medium-scale renewable energy projects.