GGF approved a EUR 7 million loan to BKT Kosovo to finance energy and resource efficiency in micro, small and medium enterprises as well as for citizens and renewable energy projects.
The Green for Growth Fund (GGF) said it provided a EUR 7 million subordinated loan to its partner BKT Kosovo. Proceeds will strengthen the bank’s capital base and enable it to increase its energy and resource efficiency lending in urban and semiurban areas of Kosovo* to micro, small and medium enterprises (MSMEs) and private individuals, but also for renewable energy projects.
As a Basel-3-compliant Tier 2 instrument, the facility aims to strengthen the bank’s capacities to advance sustainable long-term green financing. The investment is expected to contribute 4,800 tons of CO2 emissions reduction per year and 21.8 GWh of primary energy annual savings, if it is split evenly between the retail energy efficiency segment and, on the other side, small firms and entrepreneurs and energy efficiency and renewable energy on a corporate level.
It is equivalent to avoiding greenhouse gas emissions from over 1,000 gasoline-powered passenger vehicles driven for one year.
The GGF Technical Assistance will help BKT Kosovo in line with the fund’s Deep Greening initiative
“We are delighted to continue our partnership with BKT and believe this new facility, in addition to the technical assistance support to be provided, will enhance the bank’s capital to expand financing for energy and resources efficiency measures across the country,” GGF Chairperson Christopher Knowles said.
Namely, the GGF Technical Assistance will help BKT Kosovo in line with the fund’s Deep Greening initiative to build sustainability into the lender’s core business operations, improve its environmental and social management system and strengthen its green lending capacities.
BKT Kosovo expressed confidence the cooperation with the GGF would be continued with the long term
“We believe that our partnership will continue to be a long-term collaboration that will strongly influence the improvement of energy efficiency and environmental protection. Through our innovative approach, we remain devoted to deliver environmentally friendly solutions for the society,” said Suat Bakkal, CEO and Board member of BKT Kosovo.
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 and the Caucasus, Middle East and North Africa and including Ukraine and Moldova. The fund provides such financing directly to renewable energy projects, corporates and municipalities or indirectly via selected financial institutions.
BKT is the fastest-growing and most innovative bank in Kosovo*, the announcement reads.