EBRD invests €15m to support sustainable energy in Slovak Republic

The European Bank for Reconstruction (EBRD) has stepped up its support for sustainable energy investments in the Slovak Republic with provision of a €15m loan to Všeobecná úverová banka, a.s. (VUB), a leading bank in the country.

The amount will be on-lent to private firms for renewable energy projects.

The loan to VUB is extended under the third phase of the EBRD’s Sustainable Energy Finance Facility in the Slovak Republic (SlovSEFF III).

The loan is an extension of an existing €5m laon facility signed with VUB on 16 December 2014, boosting the bank’s complete exposure under SlovSEFF III to €20m.

This new loan facility is complemented by funding offered by the Slovak Republic and Spain.

These funds are drawn from the proceeds of a carbon credit transaction between the two countries and provide incentives for sustainable energy investments. In addition, Spain has provided donor funding of €2m for technical assistance.

EBRD vice president and chief risk officer Betsy Nelson said: "I would like to thank the Slovak Republic and Spain for their generous contribution and for giving us the opportunity to continue our efforts in promoting sustainable energy and build on the experience gained since the first launch of the SlovSEFF programme in 2007."

EBRD managing director for central and south-eastern Europe Sylvia Gansser-Potts added: "For the first time in the Slovak Republic, we have been able to utilise a market-based instrument to generate grant financing, which makes SlovSEFF III a highly innovative funding instrument.

"In addition, I would like to point out the important role that our partner banks play in delivering the programme and helping the EBRD in fulfilling its mandate in the Slovak Republic."