Georgian agriculture and construction companies to profit from energy efficiency loans

The Green for Growth Fund (GGF) has provided a loan of 10 million USD to Georgia’s Basisbank for supporting energy efficiency lending to large and medium-sized companies in the agriculture and construction sectors.

The synthetic GEL loan will enable BasisBank to on-lend to eligible Georgian businesses in local currency without bearing exchange rate risk upon repayment to GGF.

The loan will be further supported through tailored capacity building activities of the GGF Technical Assistance Facility to enable the lender better assess the environmental impact of its prospective investments.

“Basisbank’s focus on working with growing businesses in Georgia offers a promising potential for helping companies become trendsetters in energy efficiency. We are confident that the partnership with Basisbank will significantly help stimulate awareness and implementation of energy efficiency measures in Georgia,” GGF Chairman Olaf Zymelka said.

The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions and improve resource efficiency in 19 markets across Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. The fund provides financing to local partners that on-lend to enterprises and private households, and invest directly through the contribution of senior debt in renewable energy projects.