The Green for Growth Fund, Southeast Europe (GGF) is providing EUR 4 million in funding to Ohridska Banka, Société Générale Group for green funding.
Macedonia imports over 40 percent of its primary energy; almost 80 percent of the electricity generated domestically stems from fossil sources, mainly coal. As one of the pioneers in the market, OBSG has recognized the importance of renewable energy (RE) and energy efficiency (EE) financing and the growth potential in these segments.
OBSG’s portfolio of EE and RE sub-loans to be funded by the EUR 4 million provided by GGF is projected to reduce primary energy consumption by at least 20 percent. This will ultimately translate into annual energy savings exceeding 24,000 MWh and CO2 reductions of over 7,500 metric tons per year.
OBSG, the country’s fourth largest universal bank with a market share of 8.9 percent, capitalizes on corporate lending for the small and medium enterprises (SMEs). As OBSG executes its strategy of developing sustainable structures for EE/RE finance, the GGF’s funds will be instrumental in enabling the bank to expand its capacities in RE/EE financing as well as drive investment in these segments in Macedonia.
The partnership will be accompanied by comprehensive support – provided by the GGF Technical Assistance Facility (GGF TAF) – in developing and implementing RE projects. To ensure sustainable lending, the GGF TAF will also assist in the implementation of environmental and social guidelines as well as in monitoring OBSG’s EE loan portfolio.
“Thanks to the GGF, OBSG has now greater capacity to continue supporting EE and RE projects, and thus help to enhance the productivity of the economy and boost transition towards a prosperous low carbon future” said Branka Pavlovic, President of the Board of Directors of Ohridska Banka, Société Générale Group.