GGF deepens cooperation with UniCredit Bank Serbia with EUR 50 million renewables loan

After already investing more than EUR 50 million through credit lines in cooperation with the Green for Growth Fund (GGF), UniCredit Bank Serbia obtained a EUR 50 million loan for utility-scale renewable energy projects.

GGF, an impact investment fund advised by Finance in Motion, has announced a strategic EUR 50 million loan to UniCredit Bank Serbia. The deal deepens the engagement between the two entities aimed at supporting utility-scale renewable energy projects across the country, according to the update.

They strengthened cooperation in light of the Government of Serbia’s renewable energy auction plan and ambitious targets under the draft Integrated National Energy and Climate Plan (INECP or NECP). By focusing on solar and wind energy projects, the partnership underscores a shared commitment to accelerate the green transition in a country traditionally reliant on coal, GGF and UniCredit Bank Serbia said.

Investment to bring 400 GWh in primary energy savings per year

The fund added that it expects the investment to deliver substantial environmental benefits. It is envisaged to result in 400 GWh per annum of primary energy savings and a reduction of 132,000 tons of CO2 emissions yearly.

By leveraging UniCredit Bank Serbia’s expertise and market position, GGF intends to drive significant advancements in the region’s renewable energy sector

A crucial aspect of the loan is its technical assistance component; it provides support to renewable energy developers in Serbia, aiding them with technical due diligence and construction monitoring, GGF pointed out. The fund also said that by leveraging UniCredit Bank Serbia’s expertise and market position, it intends to drive significant advancements in the region’s renewable energy sector.

“Through this substantial investment in UniCredit Bank Serbia, we are not only reinforcing our commitment to Serbia’s renewable energy landscape but also to the broader vision of a sustainable and energy-independent future. The GGF is proud to partner with a bank that has a proven track record in green finance. We believe this collaboration will catalyze significant advancements in renewable energy deployment, contributing to a greener, more resilient energy sector in Serbia and beyond,” the fund’s Chairperson Christopher Knowles stated.

Materializing Serbia’s clean energy vision

Partnering with the bank underlines GGF’s vital role in realizing Serbia’s vision for clean energy, said Fund Director for the Green for Growth Fund’s mandate at Finance in Motion Borislav Kostadinov.

Financing sustainable energy projects is vital to achieving long-term energy sustainability, Chairperson of the Management Board of UniCredit Bank Serbia Nikola Vuletić asserted. “By enabling investment in these projects, we not only boost economic growth, but also reduce negative environmental impact, creating a cleaner and healthier future for all. So far, through credit lines in cooperation with GGF, we have invested more than EUR 50 million in placements on the Serbian market, which is a clear proof of our excellent cooperation,” he said.

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. It provides 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.

Finance in Motion is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies.