GGF extends EUR 1 million to LIDER to on-lend for energy efficiency, small renewable energy equipment
The Green for Growth Fund (GGF), an impact investment fund advised by Finance in Motion, has joined hands with the Microcredit Foundation LIDER to promote energy efficiency and use of small renewable energy equipment among households and farmers in Bosnia and Herzegovina through a loan of EUR 1 million.
The loan, along with the complementary capacity building measures, is aimed at enhancing LIDER’s green lending portfolio while enabling it to develop energy-efficiency and renewable-energy lending as a separate product line, the GGF said in a press release.
The energy efficiency and renewable energy measures financed with the loan are projected to result in annual primary energy savings of approximately 7,050 MWh and CO2 emission reductions of around 2,200 metric tons.
LIDER boasts a significant loan portfolio in home improvement, agriculture and microenterprises, which shows great potential for promoting energy efficiency, especially in construction field and agricultural machinery. Free non-financial advisory services that LIDER offers to its customers are also a valuable channel for building awareness about energy efficiency and renewable energy.
“We are very pleased to be joining LIDER in promoting energy efficiency and green energy at the micro-enterprise and household level in Bosnia and Herzegovina,” said GGF Chairman Olaf Zymelka. “We at GGF believe that the benefits of green energy and using energy resources efficiently need to be felt at the grassroots level, if we wish to contribute to a real transformation in the region’s energy generation and consumption patterns. I am confident that this partnership is yet another right step in this direction.”
Lloyd Stevens, Director at GGF advisor Finance in Motion, added: “The ongoing expansion of LIDER’s portfolio and geographic outreach will provide GGF the opportunity to extend energy efficiency and renewable energy loans beyond the urban market to the rural communities.”
General director of MCF LIDER, Džavid Sejfović stated: “The cooperation with GGF will strengthen our capacities to help our clients implement energy efficiency measures and install renewable energy equipment in their facilities, reducing their energy bills while being environment-friendly. We believe that this is just the beginning of our successful cooperation with GGF, because we expect that the general awareness of the importance of energy efficiency and renewable energy in our country will increase over time, leading to a growing interest in the implementation of this type of projects in both households and businesses.”