Green for Growth Fund and NLB Razvojna Banka Banja Luka sign energy efficiency loan
- EUR 5 million credit line for on-lending to businesses and private households in Bosnia and Herzegovina
Tirana (Albania) and Banja Luka (Bosnia and Herzegovina), June 7, 2011 - The Green for Growth Fund, Southeast Europe (GGF) signed a EUR 5 million loan agreement during the Annual Meeting of the European Fund for Southeast Europe (EFSE) held today in Tirana, Albania, to launch NLB Razvojna banka a.d. Banja Luka's (or the "Bank") new energy efficiency loan program. This is the GGF's first loan to a financial institution in Bosnia and Herzegovina. The loan will help businesses and private households in Bosnia and Herzegovina reduce their energy costs and consumption, implement cleaner production projects and reduce greenhouse gas emissions.
NLB Razvojna banka Banja Luka will use the proceeds of the GGF loan to finance such projects as improvement to building envelope, heating systems, heat distribution, interior and exterior lighting system, as well as conversion to natural gas and renewable energy utilization and installation of facilities or equipment that reduce energy consumption.
The loan is complemented by a technical assistance package, providing capacity building assistance on operational aspects of energy efficiency finance product implementation. This technical assistance support is funded by GGF's technical assistance arm, the GGF Technical Assistance Facility.
"We are pleased with our partnership with NLB Razvojna banka Banja Luka", said Monika Beck, Chairwoman of the Board of Directors of the GGF. "Not only will it bring firms and private households in Bosnia and Herzegovina economic and environmental benefits, it also underlines the role the private sector can play in improving competitiveness and mitigating global climate change at the same time."
Though the energy sector is one of Bosnia and Herzegovina's key bottlenecks to economic growth, there are also significant opportunities for climate-friendly investments with the country facing high energy intensity, obsolete equipment and poor quality of building stock. However, the lack of commercial financing has made it unaffordable for many companies and private households to invest in energy efficiency.
"We are looking forward to cooperating with the Green for Growth Fund, Southeast Europe. The Green for Growth Fund's credit line represents a new, suitable source of long-term funding for on-lending to businesses and private households", said Radovan Bajid, Director at NLB Razvojna banka Banja Luka. "Blended with our own financial resources that we are well-endowed with, the GGF loan increases our potential to support the huge investment needs in energy efficiency." Radovan Bajid continued: "The loan will help us to maintain our competitive market position. I am confident that it is just the beginning of a long-term relationship between our Bank and the Green of Growth Fund."
ABOUT THE GREEN FOR GROWTH FUND, SOUTHEAST EUROPE (GGF)
Initiated by the European Investment Bank and KfW Entwicklungsbank, the Green for Growth Fund, Southeast Europe (GGF) is dedicated to enhance energy efficiency and foster renewable energies in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo (under UNSCR 1244/99), Montenegro, Serbia and Turkey. GGF provides refinancing to financial institutions for on-lending to enterprises and private households for financing energy efficiency projects. The Fund also makes direct investments in specialist energy service companies (ESCOs), energy service and supply companies and renewable energy projects. The activities of the GGF are supported by a Technical Assistance Facility. The Fund is a public-private partnership. Its investor base comprises donor agencies, international financial institutions and institutional private investors. The Fund is registered under Luxembourg law as a Variable Capital Investment Company (SICAV). The GGF is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg, in consortium with the fund advisor, Finance in Motion GmbH, Frankfurt/Main, Germany, and technical advisor MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany.
ABOUT NLB RAZVOJNA BANKA BANJA LUKA
NLB Razvojna banka a.d. Banja Luka began operating on April 1, 2006. Its headquarters are in the Republic of Srpska entity within Bosnia and Herzegovina. With a market share of 21% by assets, NLB Razvojna Banka Banja Luka is one of the leading banks in the Republika Srpska. It also has one of the largest branch networks with 72 branch units and more than 500 employees. The Bank provides a wide range of services to corporate and retail customers, including loans, current and savings accounts, debit and credit cards, e-banking, safe deposit boxes, broker and other financial services. The Company is a member of the international financial group NLB Group, based in Slovenia.
For further information about NLB Razvojna banka Banja Luka, please visit www.nlbrazvojnabanka.com
Green for Growth Fund, Southeast Europe
Mr. Samir Djikić
Tel: +49 (0)69 9778 7650-26
NLB Razvojna banka Banja Luka
Tel: +387 (0)51 245 558