IFC invests in the Green for Growth Fund, Southeast Europe
EUR 25 million to promote energy efficiency and renewable energy projects in Southeast Europe
Frankfurt am Main, June 29, 2010 - IFC, a member of the World Bank Group, today said it will invest up to EUR 25 million in the Green for Growth Fund, Southeast Europe (GGF) to stimulate financing of energy efficiency and renewable energy projects in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, Kosovo, FYR Macedonia, Montenegro, Serbia and Turkey.
GGF will use the proceeds to provide dedicated financing to small and medium-sized enterprises and private households via financial institutions as well as direct financing to energy service companies, renewable energy companies or projects, small scale renewable energy and energy efficiency service and supply companies. This will help generate energy savings, increase companies' competitiveness, reduce greenhouse gas emissions and increase energy security in Southeast Europe.
"This investment signals our confidence in the Green for Growth Fund and will focus investor attention on renewable energy and energy efficiency, an area which remains relatively new in Southeast Europe," said Edward Strawderman, IFC Senior Manager.
"We welcome IFC's investment to the Green for Growth Fund Southeast Europe," said Monika Beck, Chairwoman of the Board of Directors of the Green for Growth Fund. "We are hoping to raise EUR 400 million to finance sustainable energy projects in Southeast Europe and already have support from the European Commission, KfW - the German Development Bank, European Investment Bank and European Bank for Reconstruction and Development."
IFC's investment increases the capital commitments the public-private partnership Fund has received from public and private investors as well as international financial institutions from initially EUR 95 million at its inception to EUR 120 million. As initiators and co-lead investors, the European Investment Bank and KfW (The German Development Bank), as well as the European Bank for Reconstruction and Development (EBRD) have each contributed EUR 25 million in A and B shares. The European Union has provided EUR 20 million in the first-loss tranche (C Shares). The German private Bank Sal. Oppenheim has also invested in the Fund.
ABOUT THE GREEN FOR GROWTH FUND, SOUTHEAST EUROPE
Initiated by the European Investment Bank and KfW (the German Development Bank), the Green for Growth Fund, Southeast Europe (GGF, formerly Southeast Europe Energy Efficiency Fund) is dedicated to enhance energy efficiency and foster renewable energies in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo, Montenegro, Serbia and Turkey. GGF provides refinancing to financial institutions for on-lending to small and medium-sized enterprises and private households for financing energy efficiency projects. The Fund also makes direct investments in specialist energy service companies (ESCOs), energy efficiency service and supply companies and renewable energy projects and public entities. The activities of 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). GGF is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg, in consortium with the investment advisor Finance in Motion GmbH, Frankfurt/Main, Germany, and technical advisor MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany.
Green for Growth Fund, Southeast Europe (GGF)
Mr. Samir Djikić, Manager Communications
Tel: +49 (0)69 97 78 76 50-26 +49 (0)69 97 78 76 50-26