FMO has invested a further EUR 20 million into the Green for Growth Fund (GGF), bringing the bank’s total investments in the fund to EUR 60 million. The loan agreement was signed at a ceremony held in The Hague on November 15, 2018. This investment in the fund’s A Shares will be used to finance energy efficiency, resource efficiency and renewable energy measures via financial institutions, as well as selected direct investments in projects, in Southeast Europe, the Caucasus and the MENA region.
FMO has been a strategic partner of the GGF since 2012. Among International Financial Institutions, the bank is the largest investor in the GGF after the fund’s two co-initiators, the German Development Bank KfW and European Investment Bank. FMO invests in projects and businesses in developing countries to spur economic development, reduce inequality, and help mitigate the negative effects of climate change. The Bank focuses on the sectors of agribusiness, energy and financial institutions to support sustainable growth in line with its commitment to the UN Sustainable Development Goals (SDGs).
The Green for Growth Fund provides refinancing to financial institutions to enhance their participation in the areas of energy efficiency, resource efficiency and renewable energy as well as making direct investments in non-financial institutions with projects in its target region. The fund has an outstanding portfolio of over EUR 400 million in 17 countries and contributes to reducing annual CO2 emissions of over 590,000 tones and annual primary energy savings of over 2.2 million MWh.
At the signing ceremony of the loan agreement, the GGF Chairman Olaf Zymelka stated: “We deeply appreciate the strategic partnership with FMO. Over the years, FMO’s support has enabled us to extend the green footprint of the GGF to newer frontiers and projects and we are delighted to see this partnership continue. ”
Huib-Jan de Ruijter, Director Financial Institutions at FMO said: “We are pleased to expand our partnership with the Green for Growth Fund, which offers a strong platform to collaborate with likeminded investors to fight climate change. Investments to advance energy efficiency and renewable energy, like our investment into GGF, will significantly contribute to reducing energy consumption and CO2 emissions, thus helping to mitigate climate change.
Huub Cornelissen (FMO) and Olaf Zymelka (GGF) shake hands at the signing ceremony.
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.
For more information see www.ggf.lu and follow us on Twitter @GreenGrowthFund
Media contact GGF
Merle Römer
Manager, Marketing & Communications
Phone: +49 (0)69 271 035-171
Email: press@ggf.lu
