MICROCAPITAL BRIEF: Green Fund for Growth lends $5.5 million to MF Banka to promote renewable energy and SME efficiency in Bosnia and Herzegovina

The Green for Growth Fund (GGF), a Luxembourg-registered public-private partnership, recently partnered with MF Banka ad Banja Luka, a bank that primarily serves small and medium-sized enterprises (SMEs) in Bosnia and Herzegovina, to expand the bank’s loan for energy efficiency and renewable energy projects. MF Banka borrows 5 million euros ($5.5 million) from GGF to finance these “green” efforts in the sectors of construction, transportation and wood processing and agriculture.

Founded in 2010, MF Banka provides personal and corporate banking services, such as loans, payment cards and internet banking. As of March 2022, MF Banka operates through 31 branches employing 264 people. The bank is a member of the Mikrofin Group of Bosnia and Herzegovina

Founded in 2009 by the EU’s European Investment Bank and the German development bank Kreditanstalt für Wiederaufbau (KfW), GGF supports financial institutions and small businesses in their efforts to increase energy efficiency and promote the use renewable energies in Europe, West Asia and North Africa. . GGF’s investors include Netherlands-based ASN Bank and Germany-based Gemeinschaftsbank für Leihen und Schenken (GLS). In 2020, GGF has 570 million euros ($620 million) of investments in progress.

By Adhya Singh, Research Associate

Sources and additional resources

GGF press release
https://www.ggf.lu/press/news/news-detail/ggf-and-mf-banka-boost-green-finance-in-bosnia-and-herzegovina-83

MF Banka homepage
https://mfbanka.com/

Mikrofin Group homepage
https://mikrofin.com/

GGF Impact Report 2020
https://www.ggf.lu/fileadmin/user_upload/Publications/Impact_Reports/GGF_Impact_Report_2020_web_compressed.pdf

FMO profile on GGF
https://www.fmo.nl/project-detail/31796

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