GGF ISSUES EUR 20 MILLION LOAN TO ZAGREBAČKA BANKA
- EUR 20 million senior loan from GGF boosts Zagrebačka banka's capacity for sustainable long-term EE and RE financing.
- Investments financed through loan are estimated to yield energy savings of up to 34,000 MWh and reduce CO2 emissions by up to 12,000 tons per year.
Luxemburg and Zagreb, 9 December 2013 - The Green for Growth Fund, Southeast Europe (GGF) has issued a EUR 20 million senior loan to Zagrebačka banka (ZABA, the Bank) in Croatia. The GGF's credit facility will be used for renewable energy (RE) and energy efficiency (EE) financing, supporting the country in achieving its EU target to decrease CO2 emissions by 20% and achieve 20% saving of energy consumptions by 2020.
The loan is aimed at providing medium- and long-term financing to SMEs and corporate clients in the areas of EE and RE. EE projects range from improving insulation (walls, windows) to overhauling machinery and processes in manufacturing companies. RE measures will include projects such as small wind farms, biomass or hydropower plants.
ZABA is one of the pioneers of EE and RE lending in Croatia. The EE product "Green loans," which ZABA launched in 2010, was the basis for the Bank's strategic commitment to offer financial solutions for EE and RE projects and to expand their participation in this growing energy market. The GGF Technical Assistance Facility (TAF) will support ZABA by providing training and conducting workshops to further improve the Bank's EE/RE finance offering and expertise, complementing the GGF's investment to maximize impact.
"The new credit facility and the accompanying measures of the TAF will add to our current efforts with regards to energy savings in Croatia," said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe. "It is a great pleasure to work with the largest bank in Croatia. We are looking forward to other Croatian institutions joining this effort."
"Credit lines to support the financing of projects related to energy efficiency and renewable energy projects represent an excellent step in the direction of energy conservation, which is particularly important from both an environmental and economic point of view. Zagrebačka banka is pleased that, after signing an agreement with the EBRD regarding financing of private and municipal energy efficiency and renewable energy projects in July this year, we have one more partner thanks to whom we can give our support to the interesting projects related to this area", said Milivoj Goldštajn, member of the Management Board for Corporate banking in Zagrebačka banka.
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 Zagrebačka banka
Zagrebačka banka (ZABA) has been the leading bank in Croatia in terms of the quality of products and services, technical innovations, successful business results etc. for years. As a member of the UniCredit Group, one of the most successful banking groups in Europe, Zagrebačka banka has also been one of the leading banks in CEE. Zagrebačka banka also was the first bank in Croatia which offered green loans which are now highly recognizable on the financial market and in public. The credit line is intended for small and medium entrepreneurs, craftsmen, citizens, local governments and NGOs.
For more information, please visit www.zaba.hr
Media contact GGF
Phone: +49 (0)69/977 876 50-320
Media contact ZABA
Corporate Communications Senior Specialist
Phone: +385 (0)1/6104 798