July 7 (SeeNews) - Germany-based ProCredit Holding is strategically directing its efforts to expanding its green loan portfolio, especially in the core markets of Southeast Europe (SEE), its CEO Hubert Spechtenhauser told SeeNews in a recent interview.
"We take it very seriously and put a lot of emphasis on green loans," Spechtenhauser told SeeNews.
Last year, green loans accounted for 20.2% of the group's loan portfolio. "So, this year we decided that we would increase the target to 25% in the medium term,” Spechtenhauser explained.
“Southeastern Europe is the most important part of our business [...] Right now, more than 90% of our portfolio is concentrated in Southeastern Europe and Eastern Europe. [...] So, Southeast Europe is our home, if you will," the official stressed.
ProCredit aims to have a viable, sustainable and profitable business model but at the same time it wants to have a positive impact on its clients, the economy and the environment, Spechtenhauser said.
He recalled that ProCredit Holding granted its first green loan in 2006, adding that at the time there was no definition of what a green loan is. "We will now be aligning our definition to what is developing as an international standard.”
On Thursday, ProCredit Holding and its Kosovo subsidiary inaugurated a 3 MW solar power plant in the capital Pristina, the first of its kind to be owned by a bank in Kosovo. ProCredit Holding and ProCredit Bank Kosovo invested nearly 2.5 million euro ($2.7 million) in the plant.
“This project combines all the elements which are important to us. It is in Southeast Europe, we are associated with the small medium enterprise (SME) sector, and it is positive for the environment, setting a precedent for other investors to support this ecological transition of Kosovo,” Spechtenhauser said.
In his view, however, gaps in the country's legislation on the use of renewable energy may deter investors from pursuing green projects in the country.
“For us it was important to showcase that you can make a green investment here in Kosovo, but it took a lot of patience to materialise, because the country and its legislation was not yet fully ready. A less committed investor might not have had the same patience."
($ = 0.9203 euro)