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The Green for Growth Fund (GGF) has approved a EUR 40 million loan to help AIK Banka expand its green lending portfolio. The Belgrade-based bank will use the loan proceeds to provide dedicated financing to businesses investing in sustainable practices and renewable energy projects.
The GGF loan will primarily support the expansion of renewable energy, helping to decarbonize Serbia’s economy, according to a press release from the fund. The loan is eligible for minimum requirement for own funds and eligible liabilities (MREL), it said.
Simon Gupta, GGF’s board chairman, said the partnership with AIK Banka strengthens the fund’s commitment to renewable energy initiatives in Serbia. “This partnership aims to drive advancements in renewable energy and contribute to a greener economy,” Gupta said.
Borislav Kostadinov, the fund’s director, stated that the strategic partnership with AIK Banka is a key step towards fostering a long-term transition toward a greener economy and energy independence in Serbia. “The Fund also provides capacity building and advisory services to our investees which is integral to our vision of building a green finance ecosystem in the region,” he noted.
Fostering Serbia’s transition toward a greener economy and energy independence
“Through this strategic partnership with GGF, AIK Banka is empowering local businesses to play an active role in building a greener economy,” according to AIK Banka CEO Petar Jovanović.
GGF was initiated as a public-private partnership in 2009 by Germany’s development bank KfW and the European Investment Bank (EIB), with financial support from the European Commission and more institutions.
Advised by Germany-based Finance in Motion and MACS Energy & Water, the fund invests in measures to reduce 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.
AIK Banka, a member of the regional Agri Europe Cyprus Group, operates a network 62 branches in 37 cities and towns in Serbia.
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