EUR 22 MILLION GLS BANK INVESTMENT IN GGF FUELS GREEN ENERGY FINANCE
- GLS Bank note issuance represents largest private investment in GGF since the fund’s creation in 2009 and substantially reinforces a public-private partnership
- Deal enables GGF to leverage funding from donors and IFIs to mobilise additional funds and increase investment impact
- Investment brings total private investments in GGF to EUR 28.5 million, nearly 10% of total funding
Luxembourg, 17 March 2015 – The German GLS Bank (GLS, the Bank) is investing EUR 22 million in the Green for Growth Fund, Southeast Europe (GGF) as part of its impact investment strategy, specifically in the area of sustainable energy. The investment will leverage existing investments from donors and international financial institutions, and provide additional funding for energy efficiency (EE) and renewable energy (RE) projects in the Fund’s target region. The funding will be used to finance EE and small-scale RE projects for businesses and households within the Southeast Europe and European Neighbourhood regions.
GGF – fulfilling its mission as a public-private partnership
The investment brings the total private capital in GGF to EUR 28.5 million, accounting for almost 10% of total funding. Of the EUR 22 million invested, GLS Bank will retain EUR 5 million on its own books. GLS is the first social and ecological bank in Germany and focuses on business in agriculture, development, education, health care and social welfare. Hence, the partnership between GGF and GLS is a perfect fit.
“The GGF is very pleased to have GLS as an investor. GLS Bank’s strong reputation in sustainable investments makes them a perfect and natural partner for the GGF,” said Christopher Knowles, Chairman of the Board of Directors of the Green for Growth Fund, Southeast Europe.
The GGF’s target countries are characterized by rising energy demand and a mostly obsolete energy infrastructure; in most countries energy is produced primarily from coal and gas-fired power plants. During the past five years the Fund was able to support more than 26 partner institutions in Southeast Europe and the Caucasus region with funding and/or technical assistance. To date an estimated 218 thousand tons of CO2, and over 850 thousand MWh of electrical power have been saved annually through energy efficiency and renewable energy investments financed by the GGF.
“We are delighted at this opportunity to offer investors a sustainable financial product that, on one hand, addresses their risk profile, and on the other reflects their values,” added Thomas Goldfuss, head of GLS Wealth Management.
GLS Bank was the first bank in Germany to focus on investments that achieve a positive social and environmental impact. GLS stands for “Gemeinschaftsbank für Leihen und Schenken”, meaning “community bank for loans and donations.” Founded in 1974, GLS Bank currently finances around 23,000 projects and businesses. The Bank focuses on cultural, social and ecological projects which try to tackle challenges in our society by developing creative solutions. GLS Bank is directing this investment to its client group of ‘Well Informed Investors’. The subscription was closed on March 11th. The minimum investment for the bearer bond was set at EUR 200,000. The term maturity was set at 5 years and the interest rate at 1.8% plus 6 months EURIBOR. For additional information on GLS Bank please go to: https://www.gls.de/privatkunden/english-portrait/
ABOUT THE GREEN FOR GROWTH FUND, SOUTHEAST EUROPE (GGF)
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 Eastern Neighbourhood region comprised of Armenia, Azerbaijan, Georgia, Moldova and Ukraine. The GGF provides refinancing to financial institutions for on-lending to enterprises and private households seeking to finance energy efficiency projects. The GGF also invests directly in small to medium-scale renewable energy projects. To maximize the impact of the Fund’s investment activities, the GGF’s Technical Assistance Facility offers capacity building support to local financial institutions and partners. The GGF was initiated as a public-private partnership in December 2009 by the KfW Development Bank (KfW) and the European Investment Bank (EIB) with the financial support of the European Commission, the German Federal Ministry for Economic Cooperation and Development (BMZ), and the European Bank for Reconstruction and Development (EBRD). Its growing base of committed investors comprises donor agencies, international financial institutions and institutional private investors, such as the International Finance Corporation (IFC), the Netherlands Development Finance Company (FMO) and the Development Bank of Austria (OeEB). The GGF, registered under Luxembourg law as a SICAV (variable capital investment company), 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 the technical advisor, MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany. For more information: 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.
Media contact GGF
Phone: +49 (0)69/977 876 50-22