GGF PARTNERS WITH AFK TO SUPPORT GREEN FINANCE IN KOSOVO
- GGF enters 14th market with EUR 1 million senior loan, its first investment in Kosovo
- EE measures financed with the GGF loan are projected to result in annual primary energy savings of up to 500 MWh and annual CO2 emission reductions of 200 metric tons
Luxembourg and Peja, Kosovo, 13 October 2016 - The Green for Growth Fund (GGF) today announced a EUR 1 million senior loan to Agjencioni për Financim në Kosovë (AFK) in a deal that further expands and diversifies the fund’s geographic and operational scope with financing for Kosovo’s developing energy efficiency (EE) market.
AFK caters to micro- and small businesses and rural communities and has recognized the importance of EE financing and the growth potential in this sector. The investment is designed to support AFK’s desire to increase its dedicated EE financing operations, and the GGF’s first loan in Kosovo underscores the fund’s ability to finance energy reduction measures in new markets. AFK is expected to on-lend the GGF investment to clients for measures that lower power use and emissions at residences and businesses. Along with the loan, the GGF is providing AFK with technical assistance to expand the institution’s expertise in EE lending.
GGF Chairman Christopher Knowles said: “Our work with AFK demonstrates yet again how we continue to extend the fund’s reach. By expanding the number of markets where we provide funding that reduces energy consumption and emissions, the GGF continues along the path to meeting its goals.”
AFK CEO Vahdet Anadolli said: “We feel excited and privileged to be the first MFI in Kosovo that will receive financial and technical support from Green for Growth Fund. AFK has already established its experience in financing energy efficient projects in Kosovo, and this new funding will allow us to further promote our values and dedication to environmental protection.”
ABOUT THE GGF
The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions by a minimum of 20% in 19 markets across Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. The fund provides financing to local partners that on-lend to enterprises and private households, and it invests directly in renewable energy projects. The GGF’s Technical Assistance Facility maximizes the fund’s investment impact through support for capacity building at local financial institutions and partners.
The GGF was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian development bank OeEB. The fund’s growing investor base comprises donor agencies, international financial institutions and institutional private investors, including the International Finance Corporation, the Dutch development bank FMO, the German ethical bank GLS, and Church of Sweden. The GGF is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg and advised by Finance in Motion GmbH. MACS Management & Consulting Services GmbH, Frankfurt am Main acts as the technical advisor.
The Agency for Finance in Kosovo (AFK) was established in October 2000 as a development program financed by Mercy Corps, a US-based NGO, with the mission to improve living conditions in Kosovo by providing access to sustainable financial services for micro and small sized enterprises. In February 2002, AFK was registered as an NGO Foundation with the Ministry of Public Administration. AFK is also licensed by the Central Bank of Kosovo as a Microfinance institution (MFI). AFK is a founder of the Kosovo Credit Information Service (KCIS) and a founding member of the Association of the Microfinance Institutions of Kosovo (AMIK) that aims to promote best practices and industry standards.
Through its headquarters located in Peja City, and 17 branches located throughout Kosovo, AFK provide credit to low income individuals with limited or no access to commercial funding sources.
As of June 30, 2016, AFK has disbursed 65,000 loans totalling EUR 121 million, 49% of which were disbursed to clients in rural areas, and 51% were disbursed to clients in semi-urban and urban areas in Kosovo.
For more information about AFK please visit www.afkonline.org
Media contact GGF
Phone: +49 (0)69/271 035-307
Media contact AFK
Lyra Rezniqi Kryeziu
Phone: +377 44 222215