Partner Microcredit Foundation (PMCF), a microfinance institution in Bosnia and Herzegovina, recently borrowed EUR 4 million (USD 5.48 million) under a senior credit agreement from Green for Growth Fund, Southeast Europe (GGF), a Luxembourg-based organization focusing on the use of renewable energy sources and enhancing energy efficiency.
The purpose of the facility is to enable PMCF to expand its loan portfolio for households in rural Bosnia and Herzegovina that are aiming to reduce household costs by implementing energy efficiency measures, such as improved insulation and upgraded heating systems.
Christopher Knowles, Chairman of GGF, explained that “in 2012, PMCF developed a strategy on energy efficiency lending […] with technical assistance from the GGF”[1], and that the current loan agreement is intended to support the implementation of this strategy. Senad Sinanovic, Director of PMCF, stated that since PMCF began offering energy efficiency loans, approximately “700 clients […] implemented energy efficiency measures on their facilities, improving comfort through the thermal insulation of buildings, replacing windows and doors, and by introducing more efficient heating and other measures”[1].
PMCF, a nonprofit and non-deposit-taking institution founded by Mercy Corps, had USD 74.2 million in assets, a gross loan portfolio of USD 60.8 million and approximately 36,100 active borrowers as of 2012. As of the same year, PMCF earned return on equity of 4.59 percent and return on assets of 1.82 percent according to the US-based nonprofit data provider Microfinance Information Exchange (MIX). Also of 2012, GGF reported total assets of EUR 161 million (USD 220 million), a loan portfolio of EUR 131 million (USD 179 million) and a profit of EUR 940,000 (USD 1.29 million).
By Alíz Crowley, Research Associate
About Partner Microcredit Foundation (PMCF)
Partner Microcredit Foundation (PMCF) is a nonprofit and non-deposit-taking microfinance organization in Bosnia and Herzegovina that was created in 1997 by US-based nonprofit Mercy Corps. PMCF is headquartered in Tuzla and operates through 55 branches in Bosnia and Herzegovina. PMCF provides microcredit focusing on agriculture and rural development. Furthermore, PMCF is engaged in the financing of housing and home improvement and offers specialized loans for energy saving methods and solar energy collectors. According to the US-based nonprofit data provider Microfinance Information Exchange (MIX), PMCF had USD 74.2 million in assets, a gross loan portfolio of USD 60.8 million and approximately 36,100 active borrowers as of 2012. As of the same year, PMCF had return on equity of 4.59 percent and return on assets of 1.82 percent.
About The Green for Growth Fund, Southeast Europe (GGF)
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), meaning Reconstruction Credit Institute, 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 (which is also known by its German acronym BMZ), and the European Bank for Reconstruction and Development (EBRD). GGF currently operates in 13 countries: Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Croatia, FYR Macedonia, Georgia, Kosovo, Moldova, Montenegro, Serbia, Turkey and Ukraine. As of 2012, GGF reported total assets of EUR 161 million (USD 220 million), a loan portfolio of EUR 131 million (USD 179 million) and a profit of EUR 940,000 (USD 1.29 million) as of December 31, 2012.
Sources and Additional Resources:
[1] Green for Growth Fund Website, May 2014, “GGF Issues Additional EUR 4 Million Loan to Partner MCF,” http://www.ggf.lu/Press-Details—2014-05-14-GGF-ISSUES-ADDITIONAL-EUR-4-MILLION-LOAN-TO-PARTNER-MCF——_site.site..html_dir._siteid.93_nav.-1_entryid.187_likecms.html
MicroCapital, June 15, 2012, “Green for Growth Fund Loans $30.6m to Partner Microcredit Foundation of Bosnia and Herzegovina, Komercijalna Banka Beograd of Serbia,” https://www.microcapital.org/microcapital-brief-green-for-growth-fund-loans-30-6m-to-partner-microcredit-foundation-of-bosnia-and-herzegovina-komercijalna-banka-beograd-of-serbia/
MicroCapital, July 10, 2012, “European Bank for Reconstruction and Development Loans $10m to Partner Microcredit Foundation of Bosnia and Herzegovina,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-loans-10m-to-partner-microcredit-foundation-of-bosnia-and-herzegovina/
MicroCapital, July 1, 2010, “International Finance Corporation (IFC) Invests $30.5m in Green for Growth Fund, SMEs To Benefit,” https://www.microcapital.org/microcapital-brief-green-for-growth-fund-loans-30-6m-to-partner-microcredit-foundation-of-bosnia-and-herzegovina-komercijalna-banka-beograd-of-serbia/
MicroCapital Universe Profile: Partner Microcredit Foundation https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Partner+Microcredit+Foundation
MicroCapital Universe Profile: Green for Growth Fund https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Green+for+Growth+Fund
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
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