GGF and partner MCF boost energy efficiency lending in Bosnia and Herzegovina
Tbilisi and Tuzla, 31 May, 2012 - The Green for Growth Fund, Southeast Europe (GGF) is providing Partner Microcredit Foundation (Partner MCF) in Bosnia and Herzegovina, Tuzla, with a EUR 1.5 million loan to help the latter in expanding its energy efficiency lending capacity. Partner MCF will on-lend the funds to micro entrepreneurs, private households and farmers for energy efficiency projects, which will help them reduce energy consumption as well as greenhouse gas emissions. This is the GGF's first energy efficiency loan to a microcredit organization.
Partner MCF is among the top five microcredit organizations in Bosnia and Herzegovina in terms of assets (EUR 55.3 million at year-end 2011). Dedicated to micro enterprises and low-income households, Partner MCF enjoys broad geographical coverage through an extensive network of branches and satellite offices, including in the country's rural areas.
The GGF loan enables Partner MCF to launch a product that will be the first energy efficiency-specific product in Bosnia and Herzegovina's microfinance sector. The loan is dedicated to finance mainly building envelope improvements, e.g. upgrading thermal insulation in walls, installing energy efficient windows, boilers and central heating systems, and other modern energy saving solutions. The GGF loan is projected to finance a portfolio of energy efficiency subloans that will achieve a minimum of 20% in primary energy savings, translating in annual primary energy savings of approximately 5,100 MWh and CO2 reductions of approximately 1,700 tons per year.
"The GGF is pleased to announce this cooperation with Partner MCF. We consider this to be an important signal to Bosnia and Herzegovina's microfinance sector that energy efficiency lending is an attractive and viable business. The GGF is committed to supporting the microfinance sector in tapping this market potential and in scaling up energy efficiency lending. By working with financial intermediaries such as Partner MCF, we can achieve significant development impact," said Monika Beck, Chairperson of the Green for Growth Fund, Southeast Europe.
ABOUT THE GREEN FOR GROWTH FUND, SOUTHEAST EUROPE (GGF)
Initiated in December 2009 by the KfW Entwicklungsbank (The German Development Bank) and the European Investment Bank (EIB) with the financial support of the European Commission and the European Bank for Reconstruction and Development (EBRD), the Green for Growth Fund, Southeast Europe (GGF) is dedicated to enhancing energy efficiency and fostering renewable energies in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo*, Montenegro, Serbia and Turkey. The GGF provides refinancing to financial institutions for on-lending to enterprises and private households for energy efficiency projects. The GGF also invests directly in specialist energy service companies (ESCOs) as well as energy service and supply companies, and renewable energy projects. The activities of the GGF are supported by a Technical Assistance Facility. The GGF is a public-private partnership with an investor base comprised of donor agencies, international financial institutions and institutional private investors. The GGF is registered under Luxembourg law as a SICAV (variable capital investment company). The GGF 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 a 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 PARTNER MICROCREDIT FOUNDATION
Partner Microcredit Foundation (Partner MCF) began operations as the Economic Development Department of Mercy Corps, a non-governmental organization, in 1997. In 2001, it was registered as Partner Microcredit Organisation, the first microcredit organization in Bosnia and Herzegovina to provide financial support to micro entrepreneurs in both entities of the country, the Federation of Bosnia and Herzegovina and Republika Srpska. In June 2008, Partner Microcredit Organisation became Partner Microcredit Foundation or Partner MCF. Partner MCF's mission is to provide financial services to the economically active population that has no access to commercial sources of funding for start-up and business development as well as for the improvement of quality of life. Through its network of 53 branches and sub-offices, Partner MCF currently serves approximately 35,000 customers across the country, both in urban and rural areas. For year-end 2011, Partner MCF reported total assets of EUR 55.3 million and a gross loan portfolio of 43.6 million.
For further information about Partner MCF, please visit www.partner.ba
Green for Growth Fund, Southeast Europe
Mr. Samir Djikić
Tel: +49 (0)69 9778 7650-26