GGF extends EUR 10 million to Ohridska to on-lend for renewable energy, energy efficiency projects

The Green for Growth Fund (GGF) has announced its second senior facility of EUR 10 million for Ohridska Banka to support the bank’s on-lending to renewable energy and energy efficiency projects. The measures and projects financed by this extended facility are expected to yield annual primary energy savings of around 26,330 MWh and CO2 emission reductions of about 7,270 metric tons, according to a press release from the GGF.

Ohridska Banka is the fifth largest bank in the country in terms of assets and gross loan portfolio out of 15 active banks in the country. The bank has been a partner of the GGF since 2015, when the first loan was disbursed for renewable energy projects. The extension of this second GGF loan came in light of the bank’s enhanced on-lending capacity, stronger foothold in the market as well as a backdrop of overall positive economic outlook.

The new Energy Law that came into force last year has also contributed to a favorable environment for lending in the renewable energy and energy efficiency segments, the GGF said.

In addition to the credit line, the GGF will continue its support to Ohridska Banka through its Technical Assistance Facility. The bank’s staff will receive further training and support to help them ensure thorough verification of the eligibility of projects and more accurate reporting on primary energy savings and CO2 emissions.

GGF Chairman Olaf Zymelka stated: “It is great to see Ohridska Banka develop into a stronger regional partner for renewable energy and its drive to diversify its portfolio into energy efficiency lending. The enhanced capacities of Ohridska Banka, coupled with North Macedonia’s positive economic outlook and reassuring energy policies signal that the time is ripe for our partnership to yield its best results.”

Nina Nedanoska, a member of Ohridska Banka’s Management Board, said: “With great pleasure we are continuing our cooperation with GGF. Energy efficiency has economic as well as environmental benefits and with this new funding we will be able to keep fulfilling our responsibility toward the environment. We have recognized the environmental potential in such projects for a long time and we continue to build the track that we started by financing and supporting ‘green’ investments. We believe this will be another successful story of cooperation with GGF. Ohridska Banka Societe Generale will remain a reliable partner, supporter and provider of such projects.”