GGF lends 2 mln euro to Montenegro's Alter Modus for energy efficiency

The Green for Growth Fund (GGF) said it is extending a 2 million euro ($2.2 million) senior loan to Montenegro's microfinance institution Alter Modus for on-lending to clients for energy and emission reduction measures at residences and businesses.

The investment will help Alter Modus - Montenegro's largest microfinance institution with a market share of 70% - become a pioneer in energy efficiency financing in the country, GGF said in a statement earlier this week.

The project will also enhance Alter Modus's capacity to help its clients implement energy efficiency measures at their facilities, improve comfort through thermal isolation of their buildings, replace windows and doors, and other measures.

Along with the loan, the GGF is providing Alter Modus with technical assistance to increase the institution’s expertise in EE lending.

"Our partnership with Alter Modus represents a further example of our desire to continue the expansion of the fund’s reach. By adding yet another country where we provide financing for measures that reduce energy use and emissions, the GGF has taken another step toward meeting its goals," GGF Chairman Christopher Knowles said in the press release.

The GGF was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank. It invests in measures designed to cut energy use and CO2 emissions by a minimum of 20% in 19 markets across Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa.

($=0.903 euro)

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