Luxembourg and Tbilisi, 24 December 2021 – The Green for Growth Fund (GGF) has partnered with Isbank Georgia, extending a EUR 6,1 million five-year facility to promote green investments throughout the country and support the decarbonization of the local economy and transition to greener energy sources. The impact of this investment will be augmented through tailored capacity building activities through the fund’s Technical Assistance Facility.
The new investment will support Isbank Georgia advance green financing in the country, particularly for energy and resource efficiency measures. The funding will enable the bank to on-lend to corporate and SME clients planning to invest in, for example, energy efficiency measures in the construction of residential buildings, as well as finance PV installations. It is estimated the GGF funding will contribute to primary energy savings of 3,700 MWh/a and CO2 reductions of 700 t/a.
On the Isbank Georgia investment, GGF Board Chairperson Olaf Zymelka said: “The GGF is delighted to partner with Isbank Georgia as they show tremendous promise in financing green energy initiatives. Access to financing is critical to Georgia’s transition to a fossil-fuel-free future, and we have full faith in the bank’s capacity to put this investment to the best use and look forward to see this partnership in action.”
Hakan Kural, Deputy Chief Executive Officer, Isbank Georgia, said: “We are proud of establishing a new partnership with GGF by signing the first loan facility for financing energy efficiency and renewable energy projects. The long-term EUR 6,1 million funding will support us to expand financing to local corporates, SMEs and households and thus increase access to “green finance” on one hand, and contribute to primary energy savings at the same time.”
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, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. The fund provides such financing directly to renewable energy projects, businesses 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, one of the world’s leading impact asset managers, with over EUR 2.6 billion in assets under advisory/management. MACS Energy & Water GmbH, acts as the technical advisor.
ABOUT ISBANK GEORGIA
JSC Isbank Georgia has been operating in Georgia since 2012 and is a wholly owned subsidiary of Türkiye İş Bankası A.Ş., the largest private bank in Turkey with total assets of $76 billion as of 30 June 2021. Türkiye İş Bankası A.Ş. is represented with 1,182 domestic and 22 foreign branches in five countries, as well as subsidiary banks and representative offices in six more countries. Isbank Georgia provides a wide variety of banking products and services to corporate, SME and retail clients in Georgia.
For more information see www.isbank.ge.
Media contact GGF
Manager Marketing & Communications
Phone: +49 (0)69 271 035-171
Media contact Isbank
Head of Financial Institutions Division
Phone: +995 32 2442244