EBRD and Banca Transilvania pioneer financing for residential energy efficiency in Romania
Comunicat de presa 2017-05-12
A €40 million loan by the EBRD to Banca Transilvania will be on-lent to sub-borrowers such as households, housing associations and service providers for energy-saving investments.
Banca Transilvania is the first bank to on-lend EBRD funds targeting energy efficiency in the residential sector. It is expected that several other Romanian banks will join the programme.
- The financing is part of the EBRD’s newly launched Green Economy Financing Facility (GEFF) for Romania, a programme with a volume of up to €100 million to finance green investments in Romania.
- The framework will initially comprise €50 million from the EBRD’s own funds, while the TaiwanICDF, which is in charge of Taipei China’s overseas development programme, has committed US$ 20 million to date.
- It is the first EBRD co-financing with the TaiwanICDF in Romania and part of the Bank’s efforts to attract new institutional investors to the country.
- The Facility is also complemented by grant-based funding made available by the Global Environment Facility and the EBRD Shareholder Special Fund to provide technical advice and support to lenders and sub-borrowers.
- Romania remains one of the most energy-intensive EU countries. Its residential sector accounts for 36 per cent of the country’s final consumption, the highest among all sectors, while the EU average is 24 per cent.
Matteo Patrone, EBRD Regional Director for Romania and Bulgaria, said: “Most of Romania’s residential buildings were constructed between 1960 and 1990 with low thermal insulation. While energy efficiency improvements are urgently needed, access to finance for such investments remains limited. We are happy to offer a new financing product that addresses this issue and very pleased to sign the first project with Banca Transilvania.”
Lucyna Stanczak-Wuczynska, EBRD Director for EU Banks, added: “The EBRD is pleased to join forces with its longstanding partner Banca Transilvania to pioneer financing for residential energy efficiency in the country. We are committed to demonstrating that this is a successful business and look forward to more partners joining the effort.”
Ambassador Weber V.B. Shih, Secretary General of TaiwanICDF, commented: “We hope that the TaiwanICDF’s collaboration with the EBRD in the Romania GEFF, which focuses on energy efficiency in the residential sector, will lead to a growth in green investment, boosting the use of the best green technologies in Romania. This will also bring about more environmentally sustainable impact in the country. We will continue to adhere to the TaiwanICDF’s vision of partnerships for progress and sustainable development and will work side by side with our partners on the road toward sustainable development.”
Ömer Tetik, CEO of Banca Transilvania, commented: “This is the third line of EBRD financing our bank has received to support investment in energy efficiency projects. The first two lines were dedicated to small and medium-sized enterprises, and now, for the first time, the target is retail clients. Such partnerships are beneficial to people, the environment and the economy, so this is a new opportunity for Banca Transilvania to support the entrepreneurial spirit and the healthy and sustainable growth of Romania’s economy.”
About BT, BERD and TaiwanICDF:
Established in 1994, Banca Transilvania is the second-largest bank by total assets in Romania. The EBRD has been a shareholder since 2001.
The EBRD is a leading institutional investor in Romania, with investments of close to €7.5 billion in almost 400 projects to date.
The International Cooperation and Development Fund (TaiwanICDF) is dedicated to boosting socio-economic development, enhancing human resources and promoting economic relations in a range of developing partner countries. The fund is headquartered in Taipei and active worldwide.