Luxembourg and Pristina, February 14, 2020 – The Green for Growth Fund (GGF) has provided a senior loan of EUR 10 million to BKT Kosovo. The proposed investment will be used by the bank to finance energy efficiency (EE) and resource efficiency (REff) and is the first dedicated funding to BKT to be used for these purposes. This will not only allow BKT Kosovo to launch a new green lending product which will allow clients access to home renovation loans, but also allow businesses to finance improvements in production processes and energy or service supply systems.
BKT Kosovo is to become one of the major banks in the country that targets all segments, including the energy efficiency segment, making it an ideal partner for the GGF. The bank operated as a branch of BKT Albania until April 2018, when it changed its status to a fully-fledged subsidiary, making it the fifth largest bank in Kosovo with an extensive branch network.
GGF Chairman Olaf Zymelka said: “Our new partnership with BKT Kosovo, the fifth partner institution in the country, demonstrates the GGF’s commitment to greening the region. We rely on likeminded institutions who recognize the potential and need for EE and REff lending to make a real difference in the sector. We are optimistic to see the fruits of this investment translate to more businesses and homes in Kosovo becoming greener, thereby protecting the environment for the future.”
BKT Kosovo CEO and Board Member Suat Bakkal said: “We at BKT Kosovo cannot ignore climate change and environmental concerns, which are hot topics today. In this regard, BKT intends to contribute its part to a better future for the country and the globe. We believe that this loan will help to increase public awareness and result in energy efficiency and, ultimately, a greener Kosovo.”
ABOUT THE GGF
The GGF helps reduce the use of energy and resources and prevent CO2 emissions. It pursues this goal by providing dedicated financing to businesses and households across 19 markets in the Southeast Europe Region including Turkey, the European Neighborhood Region-East, and the Middle East and North Africa. By using a blended finance structure and working through local partner institutions, the GGF is able to raise awareness and implement green finance activities. The fund combines its financial offering with tailored technical assistance that helps build capacity and which brings energy efficiency measures, renewable energy, and improved resource management toward the mainstream. In addition, by managing the environmental and social (E&S) risks associated with its investments, the fund sets standards for its partners and supports them to enhance their own E&S management systems, as required.
The GGF was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian Development Bank (OeEB). The fund’s growing investor base comprises donor agencies, international financial institutions and institutional private investors, including the International Finance Corporation, the Dutch development bank FMO, and the German ethical bank GLS. The GGF is advised by Finance in Motion GmbH. MACS Management & Consulting Services GmbH, Frankfurt am Main acts as the technical advisor.
ABOUT BKT KOSOVO
Banka Kombëtare Tregtare Kosovë (BKT Kosovo) is a medium-sized bank operating in the Kosovo financial market. Over the past years, the bank has increased its market penetration (market share of 11.77% as of December 2019 vs. 6.9% in 2013) and at present is the fifth largest bank in the sector. The bank has grown by 55% in asset size since June 2018. BKT Kosovo is 100.0% owned by BKT Albania, the leading Bank in Albania and an EFSE partner since 2012.
Media contact GGF
Manager Marketing & Communications
Phone: +49 (0)69 271 035-171
Media contact BKT
Head of Treasury and Financial Institutions Group
Phone: +383 38 22 36 36 Ext 385