GGF provides loan to Lovćen banka in Montenegro for its green portfolio

The Green for Growth Fund (GGF) has established a partnership with Lovćen banka in Montenegro by signing a loan agreement of EUR 3 million.

A new loan facility will enable Lovćen banka to expand its green lending portfolio, providing dedicated financing to businesses investing in sustainable practices and smaller-scale renewable energy projects, GGF said. The partnership marks the engagement of the fund’s new investee, boosting the region’s resilience and energy independence, the announcement reads.

GGF added that the signing of a loan agreement of EUR 3 million is highlighting its commitment to fostering new relationships. Additionally, it said, the strategic deal expands its investee partnerships within its mandate region, further solidifying its presence and impact in promoting sustainable development.

“We are pleased to welcome Lovćen banka as a new partner. This investment aligns perfectly with our goals on climate action and sustainable development. By supporting businesses in their efforts to adopt greener practices and renewable energy solutions, we are making meaningful strides towards a more sustainable future,” Chairperson of the Board of GGF Simon Gupta stated.

Lovćen banka joining GGF’s mission

President of the Board of Directors of Lovćen banka Miloš Miketić said the lender is joining the fund’s mission. “By stipulating the cooperation with GGF, Lovćen banka will enhance the efforts in supporting sustainable development of businesses in Montenegro helping them to continue with developing green solutions and improving the renewable energy projects,” he asserted.

The Green for Growth Fund promotes energy efficiency and renewable energy in Southeast Europe, the Caucasus, the Middle East, and North Africa. By providing refinancing to local financial institutions, the fund helps businesses and households access sustainable energy solutions, fostering energy efficiency and reducing carbon emissions.

GGF was initiated as a public-private partnership by the European Investment Bank and Germany’s KfW Development Bank, with financial support from the European Union, the German Federal Ministry for Economic Cooperation and Development (BMZ) and international investors.

Finance in Motion’s funds are all classified as article 9 of EU’s SFDR

Finance in Motion, based in Germany, serves as GGF’s advisor. It structures, manages, and advises almost EUR 4 billion across nine funds They are all classified as article 9 of the European Union’s Sustainable Finance Disclosure Regulation (SFDR), which stipulates comprehensive requirements for funds with a sustainable investment objective.

The said private market funds drive impact for people and planet through regional financial intermediaries, direct investments, advisory and capacity building, GGF said. Founded in Germany, with local expertise from Latin America to Central and Eastern Europe, the fund has been investing in emerging markets for over 15 years.

Lovćen banka said it focuses on improving small and medium businesses in Montenegro with tailor-made solutions to support their development, adding that it is establishing long-term relationships and is quick in decision making,