Supporting residential energy efficiency, the EBRD’s Green Economy Financing Facility (GEFF) has reached thousands of families across the six countries of the Western Balkans, providing financing to local banks for on-lending to households to invest in green technologies and solutions such as improving home insulation and installing efficient boilers. Together with providing funding to support the “greening” of the Western Balkans, the Bank is also engaging with governments to reform legal and policy frameworks to create an environment in which projects can succeed and wider impact is possible. The bonds are used to finance investments furthering the green economic transition in line with the Paris Agreement on climate change. Euler Hermes recently launched a Green2Green Single Risk insurance product, which enables it to support green transactions by investing remuneration received through them back into the green economy in the form of green bonds. The original loan was signed to help the bank on-lend to its small business clients for investments in energy efficiency through the EBRD’s Western Balkans Sustainable Energy Financing Facility (WeBSEFF).Įuler Hermes, a subsidiary of the German insurer Allianz SE, has pledged to use the payments it receives from the EBRD through interest premiums on this agreement to invest in green bonds. In one of the first transactions signed within this framework, Euler Hermes, through its UK branch, has taken on half the risk in an existing EBRD loan to a financial institution in Serbia. The European Bank for Reconstruction and Development (EBRD) and trade credit insurer Euler Hermes SA/NV, with the support of the Texel Group, an independent insurance broker, have signed a master risk participation agreement to boost cooperation through the Bank’s Unfunded Risk Participation programme to support investments in green bonds. EBRD aims to make more than half of its total investments in green projects by 2025.Insurer will invest remuneration on selected EBRD projects in green bonds.EBRD and Euler Hermes sign master risk participation agreement to expand cooperation.Credit guarantees mitigate payment default risks for lenders and investors, enhance the creditworthiness of projects/issuances, and hence help to improve access to capital markets and to attract private capital.
It can be designed to cover various forms of debt, including bank loans, loans made by shareholders, loans guaranteed by shareholders or third parties, capital market debt instruments, bonds, financial leases, letters of credit, promissory notes and bills of exchange.Ĭredit guarantees can be provided to different issuers, such as private and public sector projects (limited recourse financing), public–private partnerships, corporates and (sub-) sovereign entities. The guarantee can protect the entire amount borrowed or just part of it-called partial risk guarantee. The instrument can be designed to address specific debt payment structures and risks in different project phases. Credit guarantees cover the risk of payment default irrespective of the cause of non-payment, be it political or commercial. Credit guarantees cover debt service obligations by a borrower on the guaranteed principal and interest to be paid to lenders.
0 kommentar(er)
