5
|
PREFACE
|
GROWTH
|
ENERGY EFFICIENCY
|
RENEWABLE ENERGY
|
FINANCIAL RESULTS
|
GOVERNANCE
|
On behalf of the Board of Directors, I am happy to present
to you this 2015 Annual Report of the Green for Growth Fund,
Southeast Europe. The theme for this year’s report, which
marks the sixth year of operations of the Fund, is “growth”. We
believe this is a fitting topic given the
GGF
’s record growth
during 2015 across a number of key metrics for the Fund: port-
folio, number of partner institutions, measures financed,
environmental impact, private capital raised, and total com-
mitments. The continued success of the
GGF
validates the
vision of the Fund’s initiators, KfW and the European Invest-
ment Bank, and its shareholders, the European Commission,
the
BMZ
,
EBRD
,
IFC
,
FMO
, OeEB, and increasingly, private in-
vestors, to create a professionally-managed platform to lever-
age public funds with private capital to address the critical
issue of climate change by reducing energy consumption and
CO
2
emissions.
The most visible sign of the Fund’s growth in 2015 was in its
portfolio, which reached
EUR
307.1 million at year-end follow-
ing
EUR
93.6 million in disbursements to 11 financial institu-
tions, renewable energy projects and, in a newmilestone, to the
Fund’s first corporate borrower, a builder of energy efficient
housing in Georgia. Of course, portfolio growth is a means to an
end – the implementation of energy efficiency and renewable
energy projects – and 2015 was a record year in this regard as
well. The Fund’s partner institutions financed over 4,400 proj-
ects during the year, generating a substantial positive environ-
mental impact equal to removing 221 thousand cars from the
world’s roads.
The
GGF
has also increased its capital available for continuing
this growth in the form of new commitments from an existing
key shareholder,
FMO
, and through a significant notes placement
with private investors, which brought the Fund’s private sector
investments to almost 10% of its total resources. Importantly,
these notes were purchased at an attractive price for the Fund,
reflecting the
GGF
’s solid track record and sound financial fun-
damentals. We see this trend continuing into 2016, with new
private notes to be placed at benchmarks that allow the
GGF
to
grow and thrive despite challenging markets.
2015 ended on a positive note, with the
COP 21
in Paris signal-
ing a new level of political leadership and global cooperation
for tackling climate change. The
GGF
is one part of this effort,
one that has shown that with the right approaches, capital,
and know-how, real progress can be made. In 2016, the Fund
will explore new markets for expansion and refine its tools
in existing markets to further its growth and environmental
impact, and build on its success. The Fund’s broadened scope
and unique combination of impact, return, and risk mitigation
will enable this true public-private partnership to attract and
leverage new sources of capital to achieve its environmental
objectives.
We hope you enjoy reading this report, and welcome your con-
tinued interest and support.
CHRISTOPHER KNOWLES
Chairman of the Board of Directors
Letter from the Chair
