GGF ISSUES FIRST EUR 2 MILLION LOAN TO MICROINVEST IN MOLDOVA
- GGF expands geographic scope to Moldova with first loan to Microinvest for sustainable energy efficiency (EE) finance
- EE measures financed with the GGF loan projected to result in annual primary energy savings of approx. 16,800 MWh and CO2 emission reductions of approx. 3,800 tons
Luxembourg and Chisinau, 16 September 2014 - The Green for Growth Fund, Southeast Europe (GGF) and Microinvest, one of the largest microfinance institutions (MFIs) in Moldova, signed their first senior loan agreement in the amount of EUR 2 million. This credit facility provided by the GGF is aimed at funding dedicated EE loans for retail and business clients, predominantly micro and small enterprises (MSEs).
Microinvest is one of the few Moldovan MFIs to serve micro and small businesses in rural areas and to facilitate access to finance for entrepreneurs, agricultural producers and farmers. Microinvest is already issuing EE loans on a small scale as an integral part of its overall strategy and is positioned to further expand EE lending. The EE measures to be financed range from improvements to housing envelopes on the retail customer side to the replacement of energy-inefficient and outdated machinery and equipment on the business customer side.
"We are glad to partner with Microinvest in providing customers with access to much-needed EE loans. It is a win-win-win situation," said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe. "These loans will enable investments in systems that will bring down energy bills, which in turn will lower overall CO2 emissions, and Microinvest will be able to broaden its client base."
"I am sure this step is the start of a long term and fruitful partnership between the Green for Growth Fund and Microinvest. It is a partnership with our clients at heart," said Paul Panciu, Chief Executive Officer of Microinvest, Moldova. "The Green for Growth Fund means not only that we will enable our clients to realize substantial savings clients through energy efficient products, but also that we care about contributing to sustainable growth with our partners for the benefit of the world we live in. We would like to think that soon we will hear more and more about this kind of partnership in Moldova."
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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 base of committed investors comprises donor agencies, international financial institutions and institutional private investors, and includes 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
Microinvest was founded by the Soros Foundation Moldova and Moldova Microfinance Alliance in April 2003 with the purpose of providing competitive financial solutions to small businesses (sole proprietors, agricultural individual enterprises, cooperatives, Savings and Credit Associations and informal rural groups, i.e.), all those which fall beyond the scope of traditional banking due to missing collateral, insufficient credit track record, high credit risk and low cost-efficiency. Microinvest currently operates through a network of fully equipped branches spread throughout the country. The company's competitive advantages over banking institutions and other non-bank lenders: speed in processing and disbursing loans, service quality, and specialised products for small business. Microinvest is supported by a strong group of shareholders that includes the Balkan Fund for South-East Europe, Soros Economic Development Fund, Oikocredit, Soros Foundation Moldova, Richard Driehaus, Société Internationale pour le Développement et l’Investissment.
For more information, please visit www.microinvest.md
Media contact GGF
Phone: +49 (0)69/977 876 50-320
Media contact Microinvest
Phone: +373 (0)22 25 00 80