The Green for Growth Fund (GGF) has provided a senior loan of EUR 1.5 million to the microfinance institution Alter Modus. This transaction further broadens and diversifies the fund’s geographic and operational scope with financing for Montenegro’s growing energy efficiency market.
The GGF’s new investment will support Alter Modus, Montenegro’s leading microfinance institution, in further expanding its energy efficiency lending operations in a responsible manner, according to a press release from the Green for Growth Fund. Annual primary energy savings of approximately 5,800 MWh are expected, along with CO2 emission reductions of an estimated 1,800 metric tons.
Alter Modus serves more than 22,000 clients through a network of 15 branches covering all regions of Montenegro. The new loan will allow the microfinance institution to continue on‐lending to its existing clients for energy and emission reduction measures at residences and businesses, mostly for improving buildings’ thermal performance through roof and wall insulation as well as replacement of windows and doors.
Along with the loan, the GGF is providing Alter Modus with technical assistance to increase the institution’s expertise in energy efficiency lending, according to the press release.
GGF Chairman Olaf Zymelka stated: “The GGF is delighted to expand its partnership with Alter Modus, an institution that is strongly committed to providing green financing to achieve positive social and environmental impact. After the first GGF funding amounting to roughly EUR 3.1 million was well utilized, we are convinced of further success with this second investment.”
Alter Modus CEO, Ana Kentera stated: “The potential for investing in energy efficiency projects in Montenegro is growing year by year. By sensitizing the public on the benefits of energy and emission reduction measures, we are hoping to develop the sector in Montenegro. In this way, we affirm our position as a socially responsible institution that has recognized the importance of energy efficiency in raising the quality of life in Montenegro.”