In an effort to boost residential energy efficiency in Moldova, the UK-based European Bank for Reconstruction and Development (EBRD) recently loaned EUR 2 million (USD 2.6 million) to Mobiasbanca, a Moldovan commercial bank and subsidiary of France-based Groupe Société Générale SA, to be on-lent to individual households, housing associations, management companies, condominiums and energy service companies. In addition, Mobiasbanca has received a loan totaling EUR 3 million (USD 3.9 million) from EBRD for on-lending to businesses for energy-efficiency projects. As of 2011, Mobiasbanca reported total assets of MDL 2.9 billion (USD 233.5 million) and return on equity of 10.2 percent. Mobiasbanca serves 87,000 retail and corporate clients. As of 2012, Société Générale has operations in 85 countries and reported USD 1.65 trillion in total assets.
The loan is part of the Moldovan Residential Energy Efficiency Financing Facility (MoREEFF), an EBRD initiative that was launched in 2012 and includes technical assistance and homeowner investment incentives of EUR 35 million (USD 45.5 million) funded by the EU and the government Sweden. As of 2013, MoREEFF has invested EUR 348,000 (USD 453,000) in loans via partner banks to 134 households.
The EBRD is also assisting the country’s Ministry of Construction and Regional Development in amending its legal framework to enable residential associations to access loans to invest in efficient materials and equipment. In 2012, EBRD invested EUR 103.6 million (USD 135.5 million) in 13 projects.
By Jennifer Young, Research Associate
About European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects.
About Mobiasbanca – Groupe Société Générale
Mobiasbanca is a Moldovan commercial bank and subsidiary of France-based Groupe Société Générale SA. As of 2011, Mobiasbanca reported total assets of MDL 2.9 billion (USD 233.5 million) and return on equity of 10.2 percent. Mobiasbanca serves 87,000 retail and corporate clients.
Groupe Société Générale SA
Established in 1864, Societe Generale is a French financial institution specializing in retail banking, corporate and investment banking and investment management and services. As of year-end 2012, Société Générale has operations in 85 countries and reported USD 1.65 trillion in total assets.
Sources and Additional Resources
European Bank for Reconstruction and Development Story, “New Boost for Residential Energy Efficiency in Moldova,” http://www.ebrd.com/pages/news/press/2013/130521c.shtml
MicroCapital Story, May 2, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Launches $100m Credit Line for Russian Residential Energy Efficiency Improvements, Center-Invest Bank Borrows $24m,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-launches-100m-credit-line-for-russian-residential-energy-efficiency-improvements-center-invest-bank-borrows-24m/
MicroCapital Story, March 8, 2013, “MICROCAPITAL BRIEF: EBRD Plans $200m to Expand Turkish Sustainable Energy Finance Facility (TurSEFF) for Small and Medium-sized Enterprises, Private Households,” https://www.microcapital.org/microcapital-brief-ebrd-plans-200m-to-expand-turkish-sustainable-energy-finance-facility-turseff-for-small-and-medium-sized-enterprises-private-households/
MicroCapital Story, May 22, 2012, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Launches $45m Credit Framework to Increase Household Energy Efficiency in Moldova,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-launches-45m-credit-framework-to-increase-household-energy-efficiency-in-moldova/
MicroCapital Story, March 8, 2011, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Promote Energy Efficiency Through Memorandum of Understanding (MOU) with Government of Bulgaria, $9.7m Loan to Moldovan Bank BCR Chisinau,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-promote-energy-efficiency-through-memorandum-of-understanding-mou-with-government-of-bulgaria-9-7m-loan-to-moldovan-b/
MicroCapital Story, June 17, 2006, “The European Bank for Reconstruction & Development Supports Microfinance in Moldova with 2.4 million euro Credit Line Extension to Mobiasbanca,” https://www.microcapital.org/the-european-bank-for-reconstruction-development-supports-microfinance-in-moldova-with-24-million-euro-credit-line-extension-to-mobiasbanca/
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