Intermediated Loans by the Development Bank of Austria
OeEB provides climate finance to financial intermediaries
Project Facts
Location
Georgia
Southeast Europe, Latin America
Project Volume
25-50 Mio. EUR
Applied Financing Solutions
Concessional Loans, Private Equity
Project Dates
Start: 2008
In operation since/from: 2017
The Story
Oesterreichische Entwicklungsbank AG (OeEB), the Republic of Austria’s development bank and the country’s largest provider of international climate finance, provides long-term finance for on-lending for the implementation of private sector projects in developing countries and emerging markets in order to contribute to sustainable development. An example is OeEB‘s long-term credit line of US$ 25 million for earmarked on-lending through the development-oriented ProCredit Bank Georgia. The funds are used for local micro, small and medium-sized businesses (SMEs) and households, mainly for financing energy efficiency measures such as the replacement of old, energy-guzzling machines or to improve building insulation, thereby saving energy, strengthening the local private sector and creating new jobs.
Another example is OeEB’s US$ 25 million capital participation in the eco.business Fund for Latin America. The public-private partnership fund provides financing for private sector projects that contribute to the preservation of biodiversity or to the sustainable use of natural resources in the region.
Success Factor | Hero Moment
In addition to investment finance and equity participations, OeEB provides non-repayable grants and Business Advisory Services that enhance the developmental impact and success of the supported projects, e.g. through training measures. The aforementioned eco.business Fund for Latin America alone, by investing in such things as sustainable coffee and cocoa production, has helped to protect 140,000 hectares from deforestation, to sequester 4.3 million tons of CO2, and to save 4 million cubic meters of water during its first five years of operation.
Submitter
Oesterreichische Entwicklungsbank AG (OeEB), Austria
Contact Mail
office@oe-eb.at
Website
www.oe-eb.at
