PROMOTING ENERGY EFFICIENCY AMONG GEORGIAN CORPORATES: GGF PARTNERS WITH JSC BASISBANK THROUGH A LOCAL CURRENCY LOAN EQUIVALENT TO USD 10 MILLION
Luxembourg and Tbilisi, January 4, 2019 – The Green for Growth Fund has partnered with Georgia’s Basisbank, providing a loan of USD 10 million to support energy efficiency lending to large and medium-sized companies in the agriculture and construction sectors. This is a synthetic GEL loan, which would enable BasisBank to on-lend to eligible Georgian businesses in local currency without bearing exchange rate risk upon repayment to GGF. The loan would be further supported through tailored capacity building activities of the GGF Technical Assistance Facility to enable Basisbank to better assess the environmental impact of its prospective investments.
Basisbank is the sixth largest bank in Georgia offering a full range of services to its clients with clear focus on large and medium-sized companies. Leveraging its strong capitalization, professional staff and good understanding of clients’ needs, the bank has shown a remarkable portfolio growth since 2012. The bank will be a new partner for GGF to promote energy efficiency among larger and medium-sized companies seeking further growth.
GGF Chairman Olaf Zymelka stated: “Basisbank’s focus on working with growing businesses in Georgia offers a promising potential for helping companies become trendsetters in energy efficiency. We are confident that the partnership with Basisbank will significantly help stimulate awareness and implementation of energy efficiency measures in Georgia.”
Basisbank’ s General Director David Tsaava stated: “We are happy to partner with GGF and support green lending in Georgia. Based on the current market trends in energy efficiency, GGF’s assistance and field expertise will accelerate Basisbank’s contribution in green project funding. For us it is especially significant to increase awareness about energy efficiency measures and support our SMEs‘ and retail clients in their energy saving needs. Through this new partnership, we have excellent possibility to stimulate interest among our clients in EE products and the fact that lending will be offered in national currency, will make it even more profitable for our customers as well as for the country’s economy. We believe that our cooperation with GGF will be mutually beneficial, fruitful and long-lasting.”
ABOUT THE GGF
The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions and improve resource efficiency 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, Church of Sweden, and ASN Bank. The GGF is advised by Finance in Motion GmbH. MACS Management & Consulting Services GmbH, Frankfurt am Main acts as the technical advisor.
Basisbank is the 6th largest commercial bank in Georgia by total assets. Headquartered in Tbilisi, BB operates in all economically active regions of Georgia through network of 22 branches. Basisbank is majority-owned by Hualing Group, a Chinese conglomerate active in the commodities wholesale market, logistics, construction, hotel and tourism sectors in Georgia. For over 25 years of history, Basisbank has been offering quality financial products and services to its customers.
Basisbank has recorded solid track record of profitable growth for the last couple of years through strong contribution of its main shareholder Hualing Group and through continuous support from its best in class international partner organizations.
Media contact GGF
Manager Marketing & Communications
Phone: +49 (0)69 271 035-171
Media contact Basisbank
Head of Public Relations
Phone: +995-599 65 67 77