EBRD extends InvestEU guarantees worth EUR 270 million to Romanian banks
The European Bank for Reconstruction and Development (EBRD) has officially launched its Risk Sharing Facility in Romania extending EUR 270 million in “green financing” to Romanian banks under the InvestEU program.
Through its InvestEU guarantees, the EBRD expects to mobilize new green financing for individuals and companies in Romania, ensuring much-needed energy savings and carbon emission reductions.
The guarantees will be available for a wide range of borrowers, from individuals to large corporations, and will unlock financing for projects focused on energy-efficient buildings and sustainable transport. In addition to the unfunded guarantees, an EUR 11 million contribution in the form of technical assistance was provided by Romania through the PNRR, as a contribution under the member state compartment of the InvestEU program.
Romania is the fourth country to implement the EBRD’s InvestEU green portfolio guarantees in the financial sector, after launches in Croatia, Bulgaria, and Poland, according to data from Profit.ro.
Libra Internet Bank is the first bank in Romania to join the program, based on a risk-sharing agreement of up to EUR 40 million, signed in March. The agreement allows Libra to provide green financing totaling EUR 50 million over the next three years, with an 80% guarantee provided by the EBRD. The loans have an individual cap of EUR 2 million and will mainly be granted for energy efficiency and sustainable transport projects.
The EBRD is a key implementation partner within the EU’s InvestEU Program. The program aims to stimulate sustainable investments, promote innovation, and create jobs throughout Europe, to mobilize more than EUR 372 billion in additional investments between 2021 and 2027.
(Photo source: Jerome CID|Dreamstime.com)
