FMO invests EUR 25 Million in GGF
- Investment increases Fund's committed capital to EUR 191 million
- EE/RE loans financed by investment projected to reduce carbon footprint by 23,200 tons of CO2 annually by 2015
Luxembourg and The Hague, 21 November 2012 - The Green for Growth Fund, Southeast Europe (GGF, the Fund) and Netherlands Development Finance Company (FMO) in The Hague, Netherlands, signed a EUR 25 million investment in the Fund's A Share (EUR 20.6 million) and B Share (EUR 4.6 million) tranches. FMO's investment will significantly leverage GGF's public donor funding (the C Share tranche) to broaden the funding base for energy efficiency (EE) and renewable energy (RE) projects in the GGF's target region, including providing crucial capital to support the Fund's recent expansion into the European Neighborhood Region (ENR). In terms of maximizing development impact, the investment will enable GGF to finance more than one thousand additional EE and RE loans to households, micro, small and medium enterprises (MSMEs) and corporate borrowers reducing carbon emissions by an estimated 23,200 tons of CO2 annually by 2015. This equals the total annual emissions of 4,127 cars or energy consumption of 1,822 homes for one year.
To ensure the success of its financing, the GGF offers through its Technical Assistance Facility tailored solutions to meet the specific needs of its partner institutions in mainstreaming EE finance. In addition, the Fund rigorously monitors and reports energy savings and carbon emissions reductions. The Fund structures its expert knowledge in a way that is complementary to international EE/RE programmes and initiatives of international financial institutions.
FMO's investment brings the Fund's committed capital to EUR 191 million. Since its inception, the GGF has invested EUR 94 million in its partner institutions, financing EE/RE subloans with an aggregate value of EUR 68.9 million (as at 30 September 2012). The Fund estimates that these loans have resulted in a reduction of 56,000 tons of CO2 and 234,600 MWh in electricity consumption annually throughout the target region over that period.
The GGF was created in 2009 by the KfW Entwicklungsbank (the German Development Bank) and the European Investment Bank (EIB) with financial support from the European Commission and the European Bank for Reconstruction and Development (EBRD). The privately managed fund is set up as a public-private partnership and registered in Luxembourg. Funding by public investors is complemented by private capital investments. The Fund's structure builds on various investment classes with varying degrees of risk, enabling the cooperation of public donors, international financial institutions and socially oriented private investors.
"We are delighted that FMO has joined the GGF as a strategic partner, and this investment further broadens the Fund's investor base," said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe. "This investment will substantially increase the GGF's outreach and development impact, and in the process help reduce energy consumption in the Fund's target region." "FMO is proud to be a partner of the Green for Growth Fund", said Nanno Kleiterp, CEO of FMO, "this investment strongly contributes to the reduction of carbon emissions".
ABOUT THE GREEN FOR GROWTH FUND, SOUTHEAST EUROPE (GGF)
Initiated in December 2009 by the KfW Entwicklungsbank (the German Development Bank) and the European Investment Bank (EIB) with the financial support of the European Commission and the European Bank for Reconstruction and Development (EBRD), the Green for Growth Fund, Southeast Europe (GGF) is dedicated to enhancing energy efficiency and fostering the use of renewable energy sources in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo*, Montenegro, Serbia and Turkey as well as in the nearby European Neighborhood region comprised of Armenia, Azerbaijan, Georgia, Moldova and Ukraine. The GGF provides refinancing to financial institutions for on-lending to enterprises and private households for energy efficiency projects. The GGF also invests directly in specialist energy service companies (ESCOs) as well as energy service and supply companies, and renewable energy projects. The activities of the GGF are supported by a Technical Assistance Facility. The GGF is a public-private partnership with an investor base of donor agencies, international financial institutions and institutional private investors. The GGF is registered under Luxembourg law as a SICAV (variable capital investment company). The GGF is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg, in concert with the fund advisor, Finance in Motion GmbH, Frankfurt/Main, Germany, and a technical advisor, MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany.
For additional information about the Green for Growth Fund, Southeast Europe, please visit: www.ggf.lu
* (This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo Declaration of independence)
ABOUT THE NETHERLANDS DEVELOPMENT FINANCE COMPANY (FMO)
The Netherlands Development Finance Company (FMO) is the bilateral private sector development bank of the Netherlands. FMO invests in the private sector, which can serve as an engine of sustainable growth in developing markets. To this end, FMO provides capital, knowledge and partnerships to ambitious entrepreneurs. With an investment portfolio of EUR 6.2 billion, FMO is one of the largest bilateral private sector development banks worldwide. Our focus is on three sectors that create a high development impact: financial institutions, energy and agribusiness, and food & water. This focus enables us to offer tailored finance solutions based on real expertise. In other sectors, FMO teams up with renowned partners to combine local networks, knowledge and experience. We believe that our approach will lead to lasting economic and social development, which will empower people to employ their skills and improve their quality of life.
Green for Growth Fund, Southeast Europe
T: +49 (0) 69 9778 7650-22
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