BMZ INVESTS ADDITIONAL EUR 15 MILLION IN GGF
• Investment will finance energy efficiency and renewable energy investments
• EUR 1.5 million donation for GGF Technical Assistance Facility also included
• Energy efficiency and renewable energy measures enabled through BMZ’s investment are projected to catalyze annual savings of approximately 61,980 metric tons of CO2 and 239,155 MWh of primary energy
Luxembourg, 14 February 2018 – The German Federal Ministry for Economic Cooperation and Development (BMZ) has invested an additional EUR 15 million in the Green for Growth Fund (GGF). The investment in the fund’s C Shares will be used to finance energy efficiency and renewable energy projects through selected local financial institutions in Southeast Europe, the Caucasus and the MENA region. With the fund’s public-private partnership structure, the BMZ’s contribution to the first-loss tranche will be leveraged to mobilize additional investments from international financial institutions as well as private investors.
In addition to investing in the fund, the BMZ has contributed EUR 1.5 million to the GGF’s Technical Assistance Facility. The Technical Assistance Facility supports the GGF in achieving its goal of enhancing energy efficiency and renewable energy, thereby reducing CO2 emissions. It strives to build capacity in the regions in which the fund is active to ensure investments deliver maximum impact and are effective in the long term.
Since the fund’s inception in 2009, the BMZ has been a key partner of the GGF, and has contributed EUR 61.5 million to date. This latest investment is preceded by an addition EUR 7 million investment from the BMZ in June 2017, which was also coupled with a EUR 1 million donation to the Technical Assistance Facility of the GGF.
GGF Chairman Christopher Knowles stated: “The long-standing partnership between the BMZ and the GGF has been of immense importance to the GGF’s success. We are very pleased about the latest series of interventions from the BMZ which again demonstrate the BMZ’s support of tranched funds to raise private capital to work on global challenges such as reducing energy consumption and CO2 emissions.”
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ABOUT THE GGF
The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions by a minimum of 20% in 19 markets across Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. The fund provides financing to local partners that on-lend to enterprises and private households, and it invests directly, primarily through the contribution of senior debt, in renewable energy projects. 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, the German ethical bank GLS, and Church of Sweden. The GGF is advised by Finance in Motion GmbH. MACS Management & Consulting Services GmbH, Frankfurt am Main acts as the technical advisor.
For more information see www.ggf.lu and follow us on Twitter @GreenGrowthFund
Media contact GGF
Tel: +49 (0)69 271 035-171