GGF AND BKT TO ENHANCE ENERGY AND RESOURCE EFFICIENCY FOR BUSINESSES AND HOUSEHOLDS IN KOSOVO
• The Basel-III compliant Tier 2 facility will strengthen the bank’s capital structure to supply funding energy and resource efficiency in Kosovo • In addition to financing, the GGF Technical Assistance will provide BKT with technical assistance to increase green lending
Luxembourg andPristina, 12 September 2022 – The Green for Growth Fund (GGF) has provided a EUR 7 million subordinated loan to its partner, BKT Kosovo. Proceeds will strengthen the bank’s capital base and enable BTK Kosovo to increase its energy and resource efficiency lending in urban and semi-urban areas of Kosovo to micro, small and medium enterprises (MSMEs), private individuals but also renewable energy projects.
As a Basel-III compliant Tier 2 instrument, the facility aims to strengthen the bank’s capacities to advance sustainable long-term green financing. The investment is expected to contribute to 4,800 tons of CO2 emissions reduction per year and 21,800 MWh of primary energy annual savings[1]. This is equivalent to avoiding greenhouse gas emissions from over 1000 gasoline powered passenger vehicles driven for one year.
Complementing the facility, BKT Kosovo will benefit from technical assistance in line with the fund’s “Deep Greening” initiative which aims to build sustainability into BKT’s core business operations, improve their environmental and social management system, and strengthen their green lending capacities.
GGF Chairperson Christopher Knowles said: “We are delighted to continue our partnership with BKT and believe this new facility, in addition to the technical assistance support to be provided, will enhance the bank’s capital to expand financing for energy and resources efficiency measures across the country.”
Suat Bakkal, CEO and Board member of BKT Kosova in this occasion said: “We believe that our partnership will continue to be a long-term collaboration that will strongly influence the improvement of energy efficiency and the environmental protection. Through our innovative approach, we remain devoted to deliver environmentally friendly solutions for the society.”
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 such financing directly to renewable energy projects, corporates and municipalities or indirectly via selected financial institutions. 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, and the German ethical bank GLS. The GGF is advised by Finance in Motion GmbH. MACS Energy & Water GmbH, Frankfurt am Main acts as the technical advisor.