In November 2018, OeEB signed a long-term credit line of USD 25 million to ProCredit Bank Georgia. The funds will be used for financing energy efficiency projects as well as for on-lending to local small and medium-sized enterprises (SME).
|Project name||ProCredit Bank Georgia|
|Sector||Financial sector / Microfinance / SME|
|OeEB project volume||USD 25 million|
|Projekt partner(s)||JSC ProCredit Bank|
Georgia's economy has grown steadily in recent years. As a result, energy demand has been constantly increasing as well. In order to cover the increased demand, the country is still dependent on expensive energy imports. In addition, inefficient use of energy - such as lack of building insulation or outdated equipment and machinery - leads to high energy losses.
Great potential for energy efficiency measures
With suitable energy efficiency programs, not only a reduction in energy costs, but also a significant reduction in CO2 emissions can be achieved. More than half of the funds provided by OeEB is therefore intended to finance energy efficiency measures in private households and small and medium-sized enterprises. The remaining funds will be used to lend to SMEs, which are the backbone of the Georgian economy and play a key role in job creation and income.
OeEB and ProCredit Bank Georgia have shared a successful partnership for many years with credit lines for energy efficiency and SME lending signed in 2008 and in 2013. In addition, OeEB used its Business Advisory Services funds to finance supporting measures, for example for the introduction of "green finance" banking products, at the holding company level.