EUR 4 MILLION GGF PARTNERSHIP WITH OHRIDSKA BANKA, SOCIÉTÉ GÉNÉRALE GROUP TO BOOST GREEN LENDING
- GGF funding expands lending capacity of Ohridska Banka, Société Générale Group for EE and RE projects, addressing Macedonia’s need to improve their energy balance sheet
- Loans funded by the investment to yield projected annual energy savings in excess of 24,000 MWh and CO2 reductions of over 7,500 tons
Luxembourg and Skopje, 21 September 2015 – The Green for Growth Fund, Southeast Europe (GGF) is providing EUR 4 million in funding to Ohridska Banka, Société Générale Group (OBSG, the Bank). Macedonia imports over 40 percent of its primary energy; almost 80 percent of the electricity generated domestically stems from fossil sources, mainly coal. As one of the pioneers in the market, OBSG has recognized the importance of renewable energy (RE) and energy efficiency (EE) financing and the growth potential in these segments. OBSG’s portfolio of EE and RE sub-loans to be funded by the EUR 4 million provided by GGF is projected to reduce primary energy consumption by at least 20 percent. This will ultimately translate into annual energy savings exceeding 24,000 MWh and CO2 reductions of over 7,500 metric tons per year.
OBSG, the country’s fourth largest universal bank capitalizes on corporate lending with a market share of 8.9 percent and is an important player on the small and medium enterprises (SMEs) market. As OBSG executes its strategy of developing sustainable structures for EE/RE finance, the GGF’s funds will be instrumental in enabling the bank to expand its capacities in RE/EE financing as well as drive investment in these segments in Macedonia.
The partnership will be accompanied by comprehensive support – provided by the GGF Technical Assistance Facility (GGF TAF) – in developing and implementing RE projects. To ensure sustainable lending, the GGF TAF will also assist in the implementation of environmental and social guidelines as well as in monitoring OBSG’s EE loan portfolio.
“The GGF is delighted to announce this partnership with OBSG, a financial institution with a strong commitment to RE/EE lending. With its client-centered approach and tailored lending offer, OBSG effectively addresses the needs of the country’s businesses and contributes to maximizing the GGF’s impact in the region,” said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe.
“Increasing natural resource demands, urbanization and the significance of environmental aspects are creating a growing need for investment in energy efficiency and renewable energy. Both EE and RE deliver immense economic and environmental benefits, which is why we believe that there is almost unlimited potential for projects of this kind. Thanks to the GGF, OBSG has now greater capacity to continue supporting EE and RE projects, and thus help to enhance the productivity of the economy and boost transition towards a prosperous low carbon future” said Branka Pavlovic, President of the Board of Directors of Ohridska Banka, Société Générale Group.
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.
* 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.
ABOUT OHRIDSKA BANKA, SOCIÉTÉ GÉNÉRALE GROUP
Ohridska Banka, Société Générale Group (OBSG) is a universal banking institution that ranks 4th in the Macedonian market. Since 2007, OBSG belongs to one of the largest financial institutions worldwide - Société Générale Group. With more than 148,000 employees, based in 76 countries, Société Générale Group has been at the side of 30 million clients throughout the world for 150 years.
Ohridska Banka performs according to the high standards of Société Générale, respecting the four main values of the group: team spirit, innovation, commitment and responsibility. The basic strategy of OBSG is constant advancement of the quality of execution of banking services and its full dedication to meet the needs of its clients. Through its headquarters in Skopje and the widespread network of 28 branches on the territory of Macedonia, OBSG aims to be the reference for relationship banking, recognized on the market, close to clients, chosen for the quality and commitment of its teams.
Media contact GGF
Phone: +49 (0)69/9778 7650-22
Media contact Ohridska Banka
Phone: +389 (0) 2 31 67 709