Loans of EUR 20 million for RES sector – UniCredit Bank signs agreement with GGF

The Green for Growth Fund (GGF) and UniCredit Bank Serbia have signed an agreement on a loan of EUR 20 million, meant for financing projects in the field of renewable energy sources. The agreement marks the beginning of the cooperation, which entails, in addition to financing, technical help by GGF in the verification and the monitoring of projects, the press release by UniCredit Bank says.

– Through long-term financing under very favorable conditions, the GGF credit will enable UniCredit Bank to confirm its position as one of the leading players when it comes to financing RES, while at the same time strengthening the enhancement of the sector, which is only just developing in Serbia – the press release says.

UniCredit Group's exposure in the RES sector in 2016 exceeded EUR 9.4 billion, it adds.

– The new partnership with UniCredit Bank provides GGF with the opportunity to aid the development of the RES sector in Serbia through long-term financing under competitive conditions, as well as to provide support to the Fund's mission and promote this sector and energy efficiency in the markets it's present in – said Chairman of the Board of Directors of GGF, Christopher Knowles.

Enrico Verdoscia, board member at UniCredit Bank Serbia, added that they were proud that GGF had recognized them as a partner.

– Our long-term experience and our ability to follow complex transactions and adjust our financing to specific client demands will certainly contribute to our ability to provide support to the current and new clients with the funds provided through this loan – Verdoscia said.

The Green for Growth Fund invests in projects contributing to energy savings and reduction of emission of CO2 of at least 20% and is present in 19 markets, including Southeast Europe, Caucasus, Ukraine, Moldova, the Middle East and North Africa. The Fund provides refinancing of financial institutions, to the end of providing further corporate and household loans for projects of energy efficiency. The Fund also makes direct investments, that is, it provides long-term loans for RES projects. In order for the effect of financial activities of the Fund to be greater, the GGF Technical Assistance Center provides support in building capacities of financial institutions and partners.

GGF was initiated as a public-private partnership in December 2009 by KfW and the European Investment Bank (EIB) with financial support by the European Commission, the Federal Ministry for Economic Cooperation and Development of Germany (BMZ), the European Bank for Reconstruction and Development (EBRD) and the Development Bank of Austria (OeEB). The Fund is managed by Oppenheim Asset Management Services S.a r.l. in cooperation with the investment adviser of the fund, the company Finance in Motion GmbH and the technical adviser MACS Management & Consulting Services GmbH.