Our Approach

The “Objective” of the Fund is to spur additional GHG reductions by encouraging corporate and industrial entities, local financial institutions and other businesses (“Partner Institutions” or “PIs” ) which are developing and/or investing in eligible Energy Efficiency (“EE”) & Renewable Energy (“RE”) projects by providing medium and long-term debt, mezzanine financing, and guarantees as well as technical assistance aimed at maximizing learning-by-doing opportunities, facilitating deals and encouraging the long-term sustainability of the EE/RE market in the Target Region.

The Fund plans to accomplish these objectives by providing financing to the following private owned (up to 26% state owned is possible) Partner Institutions (“PIs”):

• Non-Financial Institutions (“NFIs”) including corporate and industrial entities, independent power producers, and SMEs that are developing or implementing EE and/or RE projects within the Target Region; and

• Financial Institutions (“FIs”) including local commercial banks, leasing companies and other selected financial institutions that either finance or are committed to finance private sector investments in EE and RE projects.

The Fund pursues two objectives:

• Fostering implementation/adaptation of EE and increasing RE production by extending senior and mezzanine loans dedicated to finance energy solutions predominantly via direct investments to NFIs; and

• Catalysing local financial sector to finance private sector investments in EE and RE by demonstrating the commercial viability of green finance predominantly via credit lines as well as guarantees and guarantee-type products.