The Green for Growth Fund, Southeast Europe (GGF) said on Tuesday it extended a 5.0 million euro ($7.3 million) energy efficiency loan to Bosnia’s NLB Razvojna Banka for on-lending to businesses and households.
“The loan will help businesses and private households in Bosnia and Herzegovina reduce their energy costs and consumption, implement cleaner production projects and reduce greenhouse gas emissions,” the GGF said in a statement.
This is GGF’s first loan to a financial institution in Bosnia. NLB Razvojna Banka will use it to finance projects such as improvement to building envelope, heating systems, heat distribution, interior and exterior lighting system, as well as conversion to natural gas and renewable energy utilization and installation of facilities or equipment that reduce energy consumption.
“Though the energy sector is one of Bosnia and Herzegovina’s key bottlenecks to economic growth, there are also significant opportunities for climate-friendly investments with the country facing high energy intensity, obsolete equipment and poor quality of building stock,” the statement said.
It added, however, that many companies and private households are unable to invest in energy efficiency due to the lack of commercial financing.
The GGF, initiated by the European Investment Bank and KfW Entwicklungsbank, is dedicated to enhance energy efficiency and foster renewable energy in southeast Europe.
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