GGF and MF banka boost green finance for SMEs in Bosnia and Herzegovina
The Green for Growth Fund has approved a EUR 5 million loan to MF banka in Bosnia and Herzegovina for on-lending to small and medium enterprises.
The Green for Growth Fund (GGF) has formed a new partnership with MF banka in Bosnia and Herzegovina to expand access to green finance for small and medium-sized enterprises (SMEs). A privileged loan of 5 million euros will be on-lent by the bank to companies wishing to implement energy efficiency and resource efficiency measures. The line of credit is also available for small-scale renewable energy projects.
The investment is estimated to result in a reduction in greenhouse gas emissions equivalent to taking more than 1,000 passenger vehicles off the road for a year, GGF said.
MF banka is part of the Mikrofin group, partner of GGF since 2018
MF banka has an extensive network and experience in financing energy and resource efficiency measures, according to the announcement. The lender is part of the Mikrofin Group, which has been a GGF partner since 2018. The investment is primarily aimed at energy efficiency measures in the manufacturing sector, in particular wood processing and food processing, as well as construction and transportation.
“We are proud of this new partnership with MF banka as we believe it will strengthen our reach with SME and corporate clients in Bosnia and Herzegovina, while simultaneously advancing our mission to drive energy efficiency and renewable energy in region,” said Olaf Zymelka, President of GGF. affirmed.
The investment is mainly for energy efficiency measures in manufacturing, construction and transport
MF banka chairman Bojan Luburic said the bank would be able to provide more favorable and affordable green loans to most of its SME clients. “We are aware of the impact of energy efficiency on the environment, but we know that the intensity of its implementation directly depends on the financial prerequisites,” he said.
The Green for Growth Fund invests in measures designed to reduce energy consumption and CO2 emissions and improve resource efficiency in 19 markets in South Eastern Europe, the Caucasus, Ukraine, Moldova, from the Middle East and North Africa. The fund provides this financing directly to renewable energy projects, businesses and municipalities or indirectly through selected financial institutions.
Banja Luka’s MF Bank began operations under the current name in July 2010, after the acquisition of the former IEFK Bank by MCC Mikrofin.