GGF PROVIDES REAL ESTATE DEVELOPER M2RE IN GEORGIA WITH USD 11.5 MILLION LOAN FOR THE CONSTRUCTION OF ENERGY EFFICIENT HOUSING

GGF PROVIDES REAL ESTATE DEVELOPER M2RE IN GEORGIA WITH USD 11.5 MILLION LOAN FOR THE CONSTRUCTION OF ENERGY EFFICIENT HOUSING

  • Close to 1,900 new high quality, energy-efficient (EE) apartments to be built in Tbilisi
  • Modern insulation to result in annual primary energy savings of approx. 8,800 MWh and CO2 emission reductions of approx. 1,600  tons for the GGF loan 

Luxembourg and Tbilisi, 19 November 2015 - The Green for Growth Fund, Southeast Europe (GGF) and the International Finance Cooperation (IFC) have together issued a USD 23 million syndicated loan to M2 Real Estate (M2RE), a wholly owned subsidiary of JSC Bank of Georgia. The GGF will be providing half of the loan sum, i.e. USD 11.5 million.

The new facility will enable M2RE to build close to 1,900 high-quality, mid-segment apartments with good EE standards across three different projects to address the rising demand for EE living space in Tbilisi. M2RE is a real estate developer of EE housing stock with a strong track record and an excellent reputation as a reliable partner. 

“With the support provided to M2 Residential LLC in partnership with IFC, we demonstrate our continued commitment to energy savings and the reduction of CO2 in Georgia,” says Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe. “The housing projects of M2 Residential LLC achieve an estimated 40% energy savings compared to similar-sized new buildings in the Georgian market, demonstrating the demand for high quality, green buildings.”

Click here to download the press release

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, such as 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 investment advisor, Finance in Motion GmbH, Frankfurt/Main, Germany supported by its technical advisor, MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany. For more information: www.ggf.lu

* 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  M2RE

JSC m2 Real Estate, a wholly-owned subsidiary of Bank of Georgia Holdings plc, is a real estate company focusing on the real estate development and property management. To this date, m2 Real Estate has attracted equity and debt financing in the aggregate amount of nearly US$ 80 million. m2 Real Estate has already successfully completed 3 housing projects located in the central districts in Tbilisi, Georgia, with 3 more projects underway planned to be finished in 2016. For more information, visit www.m2.ge. 

Media contact GGF

Xenia Tendyck

Phone: +49 (0)69/271 035-320

E-mail: press@ggf.lu

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