Luxembourg and Baku, 30 October 2014 - The Green for Growth Fund, Southeast Europe (GGF) issued a USD 5 million senior loan to MuganBank CJSC (MuganBank) to promote energy efficiency (EE) investments in Azerbaijan.

With its strong focus on micro, small and medium enterprises (MSMEs) and growing regional reach, MuganBank will be one of the first banks in the country to offer EE loans. The GGF facility will support MuganBank in expanding its lending operations to sustainable energy financing for MSMEs and retail clients. Typical EE measures to be financed include building envelope improvements, heating system upgrades and energy efficient equipment installations. A special focus will be on rural areas where MuganBank sees a strong potential for investments in greenhouse renovation and equipment replacement in the agricultural sector. The GGF estimates that EE investments financed through sub-loans derived from the new credit facility will yield primary energy savings and emission reductions in the order of 8,700 MWh and 4,200 tons of CO2 per annum, respectively.

“MuganBank sees growing potential for energy savings in Azerbaijan, and is a committed partner to promote energy efficiency as well as CO2 reductions in the country. In addition to the GGF’s investment, the GGF Technical Assistance Facility will support the bank in building up expertise in EE products and raising energy awareness among MuganBank’s client base,” said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe.

“We at MuganBank are pleased to receive this first senior EE loan from the GGF. We strongly believe it will lay a firm foundation for our future collaboration in promoting energy efficiency investments in Azerbaijan. The GGF credit facility will enable us to offer EE loans to our MSME and retail customers to support their investments in EE measures. We will also be able to count on capacity-building support to drive our EE lending operations forward, and that tells us that we truly have an ideal partner in the GGF," said Elmir Hasanov, Chairman of the Board of MuganBank OJSC.

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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.

MuganBank, one of the leading banks of Azerbaijan for more than 22 years, provides individuals and corporate customers with innovative products. MuganBank is one of the leaders in servicing the SME segment of the economy, and holds a growing retail portfolio as well.

Besides a network of 41 branches and 7 sub-branches operating nationwide, MuganBank also maintains a representative office in Moscow.

MuganBank cooperates with a number of international financial institutions, including the US Agency for International Development (USAID), European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), World Business Capital, Inc. (WBC), Overseas Private Investment Corporation (OPIC), Islamic Corporation for the Development of the Private Sector (ICD).

Over the last 5 years MuganBank has maintained its position in the Top 15 banks operating in Azerbaijan and holds a ‘B-’ rating with a Positive Outlook from Standard & Poor’s.

For more information, please visit

Media contact GGF
Merle Roemer
Phone: +49 (0)69/977 876 50-171

Media contact MuganBank
Saadat Abdinli
International Relations Specialist
Phone: +994 12 564 35 11

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