MICROCAPITAL BRIEF: Green for Growth Fund to Loan $2.2m to Microfinance Institution Alter Modus of Montenegro for Energy Efficiency for Housing, Business

The Green for Growth Fund (GGF), a Luxembourg-based investment vehicle that supports energy-efficiency (EE) initiatives in Southeast Europe, recently announced that it will invest EUR 2 million (USD 2.2 million) in debt in Alter Modus, a Montenegro-based microfinance institution (MFI). Alter Modus is expected to on-lend the capital to its clients for energy usage and emission reduction measures at residences and businesses in Montenegro. GGF will also provide Alter Modus with technical assistance to increase the MFI’s knowledge of EE lending.

Ana Kentera, the CEO of Alter Modus, said, “By signing the agreement with GGF, we are beginning the implementation of the first energy efficiency loan product in Montenegro’s microfinance sector. The project will enhance our capacities to help our clients implement energy efficiency measures at their facilities, improving comfort through thermal isolation of their buildings, replacing windows and doors, and other measures. With all these measures our clients will directly reduce their household/business costs.”

As of March 2016, GGF reported total investor commitments of EUR 376 million (USD 420 million) and an investment portfolio of EUR 311 million (USD 346 million). As of 2013, Alter Modus reported assets totaling EUR 16.9 million (USD 20.8 million), liabilities totaling EUR 9 million (USD 11 million), equity totaling EUR 7.9 million (USD 9.7 million), gross loan portfolio of EUR 15.5 million (USD 19.2 million) and 11,170 active clients.

By Kevin van den Brink, Research Associate

About Alter Modus

Alter Modus is a Montenegro-based microfinance institution (MFI) that specializes in issuing micro- and small loans. The MFI was founded in 1997 as a nongovernmental organization designed to provide microfinance loans across various industries in Montenegro. As of 2014, Alter Modus has 15 branches. As of 2013, Alter Modus reported assets totaling EUR 16.9 million (USD 20.8 million), liabilities totaling EUR 9 million (USD 11 million), equity totaling EUR 7.9 million (USD 9.7 million), gross loan portfolio of EUR 15.5 million (USD 19.2 million), 11,170 active clients.

About the Green for Growth Fund (GGF)

The Luxembourg-based Green for Growth Fund, Southeast Europe (GGF) focuses on extending the use of renewable energy sources and enhancing energy efficiency in Southeast Europe. GGF finances and refinances energy efficiency initiatives and invests in small to medium-scale renewable energy projects. Furthermore, GGF offers technical support and funding to local financial institutions. GGF was established in 2009 by Germany’s Kreditanstalt für Wiederaufbau (KfW) and the Luxembourg-based European Investment Bank (EIB) with the financial support of the EU’s European Commission, the German Federal Ministry for Economic Cooperation and Development (also known by its German acronym BMZ), and the European Bank for Reconstruction and Development (EBRD). As of March 2016, GGF operates in 19 markets: Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Croatia, Egypt, FYR Macedonia, Georgia, Jordan, Kosovo, Lebanon, Moldova, Montenegro, Morocco, Serbia, the Palestinian Territories, Tunisia, Turkey, and Ukraine. As of the same date, GGF reported total investor commitments of EUR 376 million (USD 420 million) and an investment portfolio of EUR 311 million (USD 346 million).

Sources and Additional Resources

[1] http://www.ggf.lu/news/detail/ggf-teams-with-alter-modus-to-support-green-finance-in-montenegro/

MicroCapital Universe Profile: Alter Modus

MicroCapital Universe Profile: Green for Growth Fund (GGF)

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