IFC To Invest up to 25 Mln Euro in Green Energy Projects in SEE
SKOPJE (Macedonia), June 29 (SeeNews) – The World Bank’s private investment arm IFC wiil invest up to 25 million euro ($30.9 million) in the Green for Growth Fund, Southeast Europe to promote energy efficiency and renewable energy projects in the region, the fund said on Tuesday.
The Green for Growth Fund, Southeast Europe (GGF) said in a statement that IFC's planned investment aims to stimulate financing of such projects in Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro, Serbia and Turkey.
GGF also said in the press release:
"GGF will use the proceeds to provide dedicated financing to small and medium-sized enterprises and private households via financial institutions as well as direct financing to energy service companies, renewable energy companies or projects, small scale renewable energy and energy efficiency service and supply companies. This will help generate energy savings, increase companies’ competitiveness, reduce greenhouse gas emissions and increase energy security in Southeast Europe.
“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,” said Edward Strawderman, IFC Senior Manager.
“We welcome IFC’s investment to the Green for Growth Fund Southeast Europe,” said Monika Beck, Chairwoman of the Board of Directors of the Green for Growth Fund. “We are hoping to raise EUR 400 million to finance sustainable energy projects in Southeast Europe and already have support from the European Commission, KfW - the German Development Bank, European Investment Bank and European Bank for Reconstruction and Development.”
IFC’s investment increases the capital commitments the public-private partnership Fund has received from public and private investors as well as international financial institutions from initially EUR 95 million at its inception to EUR 120 million.
As initiators and co-lead investors, the European Investment Bank and KfW (The German Development Bank), as well as the European Bank for Reconstruction and Development (EBRD) have each contributed EUR 25 million in A and B shares. The European Union has provided EUR 20 million in the first-loss tranche (C Shares). The German private Bank Sal. Oppenheim has also invested in the Fund.
The aim is 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.
ABOUT THE GREEN FOR GROWTH FUND, SOUTHEAST EUROPE
Initiated by the European Investment Bank and KfW (the German Development Bank), the Green for Growth Fund, Southeast Europe (GGF, formerly Southeast Europe Energy Efficiency Fund) is dedicated to enhance energy efficiency and foster renewable energies in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo, Montenegro, Serbia and Turkey.
GGF provides refinancing to financial institutions for on-lending to small and medium-sized enterprises and private households for financing energy efficiency projects.
The Fund also makes direct investments in specialist energy service companies (ESCOs), energy efficiency service and supply companies and renewable energy projects and public entities. The activities of GGF are supported by a Technical Assistance Facility.
The Fund is a public-private partnership. Its investor base comprises donor agencies, international financial institutions and institutional private investors.
The Fund is registered under Luxembourg law as a Variable Capital Investment Company (SICAV). GGF is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg, in consortium with the fund advisor, Finance in Motion GmbH, Frankfurt/Main, Germany”.