Luxembourg and Prishtina, 01 February 2021 – The Green for Growth Fund (GGF) has invested EUR 3 million into microfinance organization KEP Trust for on-lending to private individuals and small farmers in Kosovo. The loans will be made available particularly for borrowers in rural areas to enact energy efficiency and resource efficiency measures in their homes and businesses. Through the new investment, the partners aim to support a green recovery both during and after the COVID-19 crisis.
KEP Trust is Kosovo’s leading microfinance organization, serving over 20,000 clients primarily in rural areas. Since 2017, it has been an important ally in enabling the GGF to increase the availability of dedicated financing to help local businesses make their operations more sustainable. The new loan will support KEP Trust in expanding credit lines for green measures – such as updating agricultural equipment with more energy efficient models or improving household insulation in order to reduce energy waste.
By financing such activities, the investment is expected to save over 2,700 MWh and reduce more than 320 tons of CO2 emissions every year. Moreover, the partners particularly aim to maintain the ability of borrowers to continue investing in a greener future, even against the background of the COVID-19 crisis. The new funding intends to help counteract the decreased availability of liquidity that has plagued many smaller enterprises and individual households since the outbreak of the pandemic.
GGF Chairman Olaf Zymelka said: “KEP Trust is led by a strong, professional management team that is dedicated to expanding access to finance in underserved areas. This makes KEP Trust a valuable partner in helping the GGF pursue its mission to channel funding for green economic growth to those in need of it. Especially in turbulent times like these, it is more important than ever to equip local businesses and families with the resources necessary to bolster their long-term sustainability.”
KEP Trust CEO Shpend Nura said: “KEP Trust is glad to strengthen the partnership and cooperation with GGF, which is crucial to further expand the access to finance for customers in rural areas. We are looking forward to fulfil our common mission in funding green economic growth.”
ABOUT THE GGF
The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions, and improve resource efficiency in 19 markets across Southeast Europe and Turkey, the European Eastern Neighbourhood Region, and the Middle East and North Africa. The fund provides such financing directly to renewable energy projects, corporates and municipalities or indirectly via selected financial institutions. The GGF’s Technical Assistance Facility maximizes the fund’s investment impact through support for capacity building at local financial institutions and partners.
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 Energy & Water GmbH, Frankfurt am Main acts as the technical advisor.
For more information see www.ggf.lu and follow us on Twitter @GreenGrowthFund
ABOUT KEP TRUST
KEP Trust is the largest microfinance institution in Kosovo, which provides its clients with a variety of loan products.
Meeting clients' financial goals as well as building continuous ties with them is at the center of KEP Trust's aspirations. In this way, KEP contributes directly in creating jobs, thus giving a boost to the development of the overall economy of the country.
Media contact GGF
Manager Marketing & Communications
Phone: +49 (0)69 271 035-171
Media contact KEP Trust
Phone: +383 (0) 49 946 580