TEB Sh.A. and EBRD sign cooperation agreement
€5 million loan to Kosovo bank TEB under the Western Balkans Green Economy Financing Facility.
The TEB Bank JSC received a €5 million loan from EBRD (European Bank for Reconstruction and Development) through its €85 million Green Economy Financing Facility (GEFF) for the Western Balkans.
The loan will be on-lent to individuals, housing associations, producers and vendors of green technologies to support investment in energy efficiency technologies in residential buildings. An increase of 10 per cent in the market penetration rates of green technologies and materials is expected in the Western Balkans region.
In line with the EBRD’s Green Economy Transition (GET) approach, the loan will promote residential green economy investments in Kosovo. Incentives and technical cooperation in support of green technology investments will be provided by the European Union (EU), Austrian Federal Ministry of Finance and the European Western Balkans Joint Fund under the Western Balkans Investment Framework.
The loan will be complemented by technical cooperation grants to support preparation, implementation and monitoring of the framework across the GEFF’s six Western Balkans signatories. In addition, an associated grant of €1million from the EU will finance investment incentives to sub-borrowers in Kosovo.
EBRD financing for the green economy rose from €2.8 billion in 2016 to €4.1 billion in 2017, accounting for 43 per cent of total financing. The Bank had pledged, ahead of the 2015 Paris Agreement, to devote 40 per cent of its financing to green investment by 2020. This goal has been met three years early.
The EBRD has had a relationship with TEB since 2013. TEB is a key partner financial institution for implementing green projects in Kosovo. TEB has been a key partner financial institution for implementing green projects in the country, lending nearly €5 million under the Kosovo Sustainable Energy Programme (KoSEP).
The EBRD is a major international financial investor in Kosovo. To date, the Bank has made a cumulative commitment of €322 million through 57 projects in the country.