GGF STRENGTHENS COOPERATION WITH HALKBANK IN MACEDONIA WITH SECOND EUR 10 MILLION LOAN
- GGF expands successful cooperation with Halkbank Skopje through additional EUR 10 million to finance energy efficiency projects in Macedonia
- Projects to be financed estimated to yield annual primary energy savings of up to 44,290 MWh and emission reduction of 13,770 tons of CO2 per annum
Luxembourg and Skopje, 18.12.2014, The successful cooperation between the Green for Growth Fund, South East Europe (GGF) and Halkbank AD Skopje (Halkbank) has led to a second senior loan facility in the amount of EUR 10.0 million. The credit facility provided by the GGF enables Halkbank – via its Eco-loan products – to increase the scope and volume of its financing business for energy efficiency (EE) measures, such as the replacement of energy-inefficient heat supply systems and the upgrade exterior wall and roof insulation, heating and lightening systems, and appliances. EE loan products directed at business clients also include the replacement and/or upgrade of energy-inefficient production equipment and process-related equipment. The GGF loan will facilitate access to credit in rural areas for replacing obsolete farming equipment as well.
Halkbank, a green finance pioneer in the Macedonian market, began its EE lending activities in 2010 after obtaining its first loan from the GGF. With the support of the GGF Technical Assistance Facility, Halkbank developed specific retail and business EE loan products (Eco loans) and executed a sustainable sales and marketing strategy for EE lending. As a result Halkbank has built a very strong business in line with the GGF’s green development finance objectives, fully utilizing the first GGF loan.
“We are delighted to strengthen our partnership with Halkbank with a second credit facility for EE finance. The high utilization rate also shows the need of such loans and we appreciate Halkbank’s proactiveness in maintaining the momentum to finance its successful Eco-loans,” said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe. “With this new dedicated range of credit products, Halkbank is making a huge difference in helping retail and business partners to improve their energy efficiency in a sustainable manner.”
‘’The strong cooperation between Halkbank AD Skopje and GGF finds itself reinforced with this second loan. The new credit facility enables us to provide the Macedonian market with financing under optimum terms to drive investments in environmentally responsible and energy-aware systems and equipment at both the residential and commercial levels in Macedonia,” said Necdet Palakci, CEO of Halkbank AD Skopje. ‘’Whether for personal or business needs, the benefits of these credit products at low interest rates will lead to lower energy and operational costs. We are very pleased to have such a solid and reliable partner as the GGF for this purpose”
ABOUT THE GREEN FOR GROWTH FUND, SOUTHEAST EUROPE (GGF)
The Green for Growth Fund, Southeast Europe (GGF) is dedicated to enhancing energy efficiency and fostering the use of renewable energy sources in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, Macedonia, Kosovo*, Montenegro, Serbia, and Turkey as well as in the nearby European Eastern Neighbourhood region comprised of Armenia, Azerbaijan, Georgia, Moldova and Ukraine. The GGF provides refinancing to financial institutions for on-lending to enterprises and private households seeking to finance energy efficiency projects. The GGF also invests directly in small to medium-scale renewable energy projects. To maximize the impact of the Fund’s investment activities, the GGF’s Technical Assistance Facility offers capacity building support to local financial institutions and partners. The GGF was initiated as a public-private partnership in December 2009 by the KfW Development Bank (KfW) and the European Investment Bank (EIB) with the financial support of the European Commission, the German Federal Ministry for Economic Cooperation and Development (BMZ), and the European Bank for Reconstruction and Development (EBRD). Its growing base of committed investors comprises donor agencies, international financial institutions and institutional private investors, such as the International Finance Corporation (IFC), the Netherlands Development Finance Company (FMO) and the Development Bank of Austria (OeEB). The GGF, registered under Luxembourg law as a SICAV (variable capital investment company), is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg, in concert with the fund advisor, Finance in Motion GmbH, Frankfurt/Main, Germany, and the technical advisor, MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany. For more information: www.ggf.lu
* This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo Declaration of independence.
ABOUT HALKBANK AD SKOPJE
Halkbank AD Skopje represents a bank that has initiated the raise of fast and quality services within the Macedonian market by implementing innovative processes in its business. It is a bank with a wide national and international network consisted of 30 operating branches in Macedonia, a representative office in Belgrade-Serbia and correspondent relationships with 404 banks and account relationships with 16 foreign banks.
Being one of the mid-sized banks of the country, as it is classified by the NBRM, HALKBANK AD, Skopje has a significant reputation and recognition as a trustable, customer oriented, socially responsible, innovative and growing bank in the Macedonian market.
The image of the bank is being enriched by the fact that HALKBANK is socially and eco responsible institution. Since its presence in Macedonia, HALKBANK AD Skopje has constantly given its support to the environmental development and protection, many socially concerned segments, sports and culture.
Among the already mentioned, the bank has also been enjoying long term relationships with international financial institutions in providing long term development funds to the Macedonian economy.
In 2013 HALKBANK has shown continuity in supporting the companies and citizens, while the quality of the offered services remained high. The loan portfolio of the Bank showed an increase from 147.4 million EUR to 221.4 million EUR, or net growth of more than 50%, while the total banking sector lending recorded a net increase of 213 million EUR where HALKBANK AD Skopje had a leading share of 34% of the total net increase of the loans in the banking sector with additional 74 million EUR disbursed loans to Macedonian companies and citizens.
For more information, please visit http://www.halkbank.com.mk/home.nspx