GREEN FOR GROWTH FUND, SOUTHEAST
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Green for Growth Fund ("GGF") is a structured debt fund with EUR 578 million committed capital, managed by Finance in Motion ("FiM"). It is the first specialized fund to advance energy effiency (EE), renewable energy (RE) and resource efficiency (REff) in Southeast Europe (incl. Turkey), the European Neighborhood Region-East, and the Middle East and North Africa (MENA). 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.
What is our funding objective?
This FMO-A loan (EUR 20 million in USD equivalent - across 2 facilities) aims to achieve a 20% reduction in energy or resource consumption and/or a 20% in CO2 emissions through two core activities. Firstly, by refinancing bank and non-bank financial institutions to support their on-lending to households, business, municipalities and public sector for EE, REff and RE measures or projects. The second activity is providing direct financing to non-financial institutions that meet GGF's energy saving and/or emissions targets and comply with the technical criteria and GGF exclusion list.
Why do we fund this investment?
Firstly, GGF’s and FMO’s strategy go hand in hand aiming to reduce GHG-emissions. GGF is additional to FMO’s green offering, as the Fund has the expertise and capacity to develop/cultivate a green market. GGF's financing results in a broader financing base of EE and RE investments in the target regions, increased awareness of EE, REff and RE products among companies and private households. This will open up a green market for FMO to tap into. Secondly, close cooperation with GGF offers FMO significant opportunities to learn from the Fund’s green line expertise. In addition, FMO's investment will be important for the Fund to attract commercial investors investing in GGF's Note-program. Beyond GGF, FMO considers the investment as a confirmation of the good relationship we have with FiM. FMO has also invested in several other funds managed by FiM, being EFSE, SANAD and the ECO Business Fund.
What is the Environmental and Social categorization rationale?
GGF is catagorized as Category B in terms of the level of risk within the sectors it engages and the level of IFC Triggered Transactions within the portfolio. GGF’s E&S categorization is aligned with IFC PS and EU legislation.
More investments
| Date | Total FMO financing |
|---|---|
| 11/15/2018 | EUR 10.00 MLN |
| 1/8/2015 | USD 17.06 MLN |
| 1/8/2015 | EUR 3.01 MLN |
| 1/30/2019 | 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
- Publication date
- 3/12/2018
- Effective date
- 11/15/2018
- Total FMO financing
- EUR 10.00 MLN
- Funding
- FMO NV
-
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