July 27 (SeeNews) - The Green for Growth Fund (GGF) said it committed 20 million euro ($22.2 million) in support of the first ever green bond issued by Slovenia's Nova Ljubljanska Banka (NLB), [LJSE:NLBR] in the total amount of 500 million euro.
The deal is aligned with GGF's goal of supporting the development of renewable energy projects in North Macedonia, Montenegro, Serbia, Bosnia and Herzegovina, and Kosovo, GGF said in a press release earlier this week.
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"This transaction reflects strong credit and performance of the NLB Group, as well as demonstrates that NLB has wide access to capital markets, and very importantly it is a measure of confirming our approach to sustainability," the Slovenian banking group's CEO, Blaz Brodnjak, said.
NLB unveiled plans for the green bond issuance in June. The group will aim to allocate the new funds to green projects that comply with the conditions laid out in its Green Bond Framework, namely to boost affordable and clean energy and climate action initiatives spurring on the energy transition in the coal-reliant region of Southeast Europe, GGF said.
GGF has been partnering with NLB since 2011, when it provided financing to NLB Banka Banja Luka, formerly NLB Razvojna Banka, to back low-carbon heating and distributed renewable energy production.
Launched in 2009, the Luxembourg-based impact investment fund is backed by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian Development Bank (OeEB).
($ = 0.9020 euro)
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