GGF PROVIDES FIRST-EVER GREEN FINANCING LINE IN PALESTINIAN TERRITORIES WITH USD 2 MILLION LOAN TO SUPPORT ENERGY EFFICIENCY
• Vitas becomes first GGF partner in the country
• EE measures financed with the GGF loan are projected to result in annual primary energy savings of approx. 12,000 MWh and CO2 emission reductions of approx. 3,150 metric tons
Luxembourg and Ramallah, 12 December 2017 – The Green for Growth Fund (GGF) has announced a USD 2 million senior loan to Vitas Palestine Microfinance Private Shareholding Company (Vitas). This is the fund’s first investment in the Palestinian Territories and the first green facility by a development finance institution in the country.
Vitas, the second largest microfinance institution in the Palestinian territories, plans to use the GGF financing to promote energy efficiency measures among its client base. Leveraging their existing home improvement program, the financing will support loans for households to improve energy efficiency measures. Vitas will also raise awareness for energy efficiency among micro and small businesses as it moves into energy efficiency lending for this target group.
GGF Chairman Christopher Knowles said: “We are very pleased to announce our first transaction in the Palestinian Territories, following the fund’s expansion in 2016 into the Middle East and North Africa. This new partnership with Vitas puts GGF at the forefront in supporting energy efficiency in this market.”
Vitas Palestine General Manager Alaa Sisalem said: “We are very proud to be the first partner on board of the GGF fund in the Palestinian Territories, which will contribute to a positive change to the environment and people's lives. In addition, this loan will help raise and promote awareness about the benefits and advantages of energy efficiency as well as helping us contribute to sustainable development in the Palestinian Territories.”
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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, primarily through the contribution of senior debt, 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 advised by Finance in Motion GmbH. MACS Management & Consulting Services GmbH, Frankfurt am Main acts as the technical advisor.
ABOUT VITAS PALESTINE
Vitas Palestine was established in 2014 and was launched on 01.01.2015. It is considered as an extension to the Ryada program for lending and financial services, which was established in 1995 as one of the most important specialized programs in providing housing loans and small business development loans in the Palestinian territories for Global Communities (formerly known as CHF International).
Vitas Palestine seeks to enable all people with a desire and capacity to improve their lives to have access to the financial services they need to help them realize their potential and become full social and economic participants in their communities. It also endeavors to provide financial products and services that meet the needs of its customers and enhance the long-term development for individuals, businesses, families and communities among which they live.
In addition, drawing on its financial know-how, strong risk management, and mission to provide financial products and services to people with a desire and capacity to improve their lives and community, Vitas Palestine is extremely interested in promoting energy efficiency measures among its client base.
Media contact GGF
Manager, Marketing & Communications
Tel: +49 (0)69 271 035-171
Media contact Vitas Palestine
Tel: +970 22410510