GGF AND INTESA LEASING BELGRADE SIGN EUR 5 MILLION ENERGY EFFICIENCY LOAN AGREEMENT

  • Intesa Leasing is one of Serbia's leading leasing companies and a new partner institution of the GGF
  • The 5 million euro credit facility will support sub-loans for replacing and/or upgrading energy inefficient manufacturing and agricultural equipment, and thus contribute towards reducing overall energy consumption
  • The agreement extends access to long-term energy efficiency financing for a wide range of clients

Luxembourg and Belgrade, 13 January 2014 - The Green for Growth Fund, Southeast Europe (GGF) signed a senior loan facility of EUR 5 million with Intesa Leasing Belgrade (ILB) in Serbia to provide energy efficiency (EE) financing for a wide range of business and agricultural clients across the country. This new partnership between Intesa Leasing and the GGF follows through on the successful relationship already established by the GGF with Banca Intesa Belgrade, the parent company of Intesa Leasing. The GGF loan facility will support Intesa Leasing's commitment to develop long-term EE lease financing. The Intesa Leasing deal is the GGF's first energy efficiency loan to a leasing company in Serbia.

The loan will be accompanied by tailored support - to be provided by the GGF Technical Assistance Facility - that includes EE market analysis and staff training as well as help with implementing a monitoring and reporting system, and conducting energy audits. With the GGF's support, Intesa's clients will be able to upgrade energy inefficient production equipment, replace obsolete machinery and agricultural equipment, and significantly optimize the energy equation in their production processes.

Intesa Leasing's portfolio of EE sub-loans to be funded by the GGF's EUR 5 million loan is projected to achieve 20% in primary energy savings. This will ultimately translate into annual energy savings of approximately 50,000 MWh and CO2 reductions of approximately 12,500 tons per year.

"We are delighted to expand our collaboration with the Intesa Group," said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe. "Intesa Leasing Belgrade is one of the leading leasing companies in Serbia, and fully committed to developing energy efficiency financing, and thus contributing to the reduction of energy consumption in the country. This makes them an excellent fit for the GGF," Knowles added.

"In the spirit of partner relationship on which we have been insisting and successfully achieving with clients for many years, we try to provide them with funds that will suit their needs and be as affordable as possible. In that respect, focusing on increasing productivity through reduction of dependent energy expenses and the positive effect on the environment is one of the strategic directions of the company, recognized and adopted by the ISP Group," said Nebojša Janićijević, President of Executive Board of Intesa Leasing.

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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 investor base comprises donor agencies, international financial institutions and institutional private investors, and recently added the International Finance Corporation (IFC) and Netherlands Development Finance Company (FMO). 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 Intesa Leasing Belgrade

Intesa Leasing Belgrade began operations in March 2006. High goals were set for the company from the very start, one of them being to attain the leading position and results already achieved in the banking sector by the parent bank, Banca Intesa Belgrade. Founded when the leasing market was already well developed, Intesa Leasing Belgrade's objective of ranking at the top of the leasing market seemed an impossible challenge.

At first, the company was focused only on financing new passenger and commercial vehicles. By the end of 2006, however, the product line was expanded to cover the financing of plant and equipment as well. The numerous challenges of the economic crisis, which confronted all the participants in the financial markets, were recognized on time, and the financing focus shifted to production equipment and commercial vehicles to reduce exposure to the risks and problems that the car industry was facing then and still faces today.

Also, a strong focus was placed on the SME segment, i.e. primarily family-owned businesses with both longstanding tradition and experience that are involved mainly in manufacturing for exports or services of internal and international logistics. It is precisely this client segment, recognized as the healthiest part of our corporate sector, which proved to be the most resilient and faced the crisis by making additional efforts, new investments and by improving their business activities. The synergy that we achieved with clients from this segment, by supporting them financially in the most difficult times, contributed significantly towards establishing long-term cooperation and partnership relations, and towards positioning Intesa Leasing as a leader in financing equipment and commercial vehicles.

The aforementioned strategic guidelines, which are founded on organic growth for the company, a conservative business approach and, what is especially important, the support of our parent Banca Intesa Belgrade, resulted in Intesa Leasing Belgrade quickly becoming a leader in the Serbian leasing market by all relevant business criteria during the crisis - profitability, new business and portfolio quality.

More information on Intesa Leasing Belgrade is available at www.intesaleasing.rs

Media contact GGF

Xenia Tendyck
Phone: +49 (0)69/977 876 50-320
E-mail: press@ggf.lu

Media contact Intesa Leasing media office

Selena Miletić
Media Relations Associate
Phone: +381 11 209 98 17
E-mail: selena.miletic@bancaintesa.rs

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