Project detail - GREEN FOR GROWTH FUND, SOUTHEAST

GREEN FOR GROWTH FUND, SOUTHEAST

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Who is our client

The Green for Growth Fund Southeast Europe (GGF) is the first specialized fund to advance energy efficiency (EE) and renewable energy (RE) in Southeast Europe, including Turkey. GGF is an innovative public-private partnership established to reduce energy consumption and CO2 emissions. GGF provides refinancing to financial institutions to enhance their participation in the EE and RE sectors and also makes direct investments in non-financial Institutions with projects in these areas. The activities of GGF are supported by a technical assistance facility.

Funding objective

GGF's investments seek to achieve a 20% reduction in energy consumption and/or a 20% reduction in CO2 emissions through two core activities. Firstly by refinancing financial institutions (local commercial banks), non-bank financial institutions (such as microfinance institutions and leasing companies) and other selected financial institutions providing loans to households, businesses, municipalities and public sector for energy efficiency measures or renewable energy projects. Investments through financial institutions will constitute the majority of GGF's investments. The second activity is providing direct financing to non-financial institutions (energy service companies, renewable energy companies or projects, small scale renewable energy and energy efficiency service and supply companies) that meet GGF energy saving and/or emissions targets, and comply with the technical criteria and GGF exclusion list.

Why we fund this project

This is FMO's second investment in GGF. GGF's activities generate green economic growth via investments in financial institutions. This is reflective of FMO's strategy. More specifically, GGF financing results in the following impacts: a broader financing base of EE and RE investments in the target regions; incrased awareness of EE and small RE products among companies and private households; and contributions to broadening and deepening the financial sector servicing those development needs.

More investments

Date Total FMO financing
11/15/2018 EUR 10.00 MLN
11/15/2018 EUR 10.00 MLN
1/8/2015 EUR 3.01 MLN
11/14/2014 EUR 0.09 MLN
10/23/2012 EUR 20.60 MLN
10/23/2012 EUR 4.65 MLN
Region
Europe & Central Asia
Country
Europe & Central Asia
Sector
Financial Institutions
Signing date
1/8/2015
Total FMO financing
USD 17.06 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B