NLB Banka and EBRD sign an agreement for green investments.

NLB Banka Prishtina is already a partner bank of the European Bank for Reconstruction and Development (EBRD) in Kosovo. In the framework of this cooperation, the EBRD has provided two loans with a total value of 10 million euros for NLB Banka. The purpose of these loans is to enable the Bank to further support to MSMEs and the housing sector in Kosovo.

Of the total financing, €5 million under the Green Economy Financing Facility (GEFF) will be channeled to enable individual residents, housing collectives, construction companies and the public sector to invest in energy efficiency and renewable energy. Borrowers will be able to upgrade privately owned homes and buildings with high-performance green technologies, sustainable materials and innovative solutions.

On successful installation of the green technologies, homeowners will benefit from incentive payments of up to 20 per cent of the loan value. In addition to financial support, they will receive guidance on selecting and purchasing energy-efficient equipment, such as insulation, windows, heat pumps and solar panels. The loan is being supported by the European Union (EU) through the Western Balkans Investment Framework, as well as by Japan and Denmark.

The second project is a senior loan of up to €5 million under the EBRD’s SME Go Green programme, which provides green finance for MSMEs in cooperation with the EU. The programme is expected to reduce the country’s greenhouse gas emissions by enabling investments in energy efficiency, resource efficiency and renewable energy projects.

At least one-third of this loan will be directed to the agribusiness sector and its value chains, while 25 per cent of the funds will be dedicated to women-led businesses. The EBRD loan will be complemented by EU-funded technical assistance aimed at supporting both local firms and the Bank with capacity-building training.

In addition, MSMEs will be eligible for incentive payments: 15 per cent of the loan value for investments in renewable energy in the agribusiness sector and its value chains, and 10 per cent for other eligible green economy investments. The incentive payments will be received once the investment has been successfully completed and validated.

Sergiy Maslichenko, EBRD Head of Kosovo, said: “We are proud to drive the green energy transition in Kosovo, where it is much needed. With the country’s heavy reliance on coal generation, our green investments play a critical role in reducing greenhouse gas emissions and setting a benchmark for a sustainable future. In collaboration with NLB Banka Prishtina, we aim to expand access to green financing in various sectors, empowering homeowners and MSMEs to embrace renewable energy and energy efficiency.”

NLB Banka Prishtina is the second-largest commercial bank in Kosovo and a longstanding EBRD partner. The bank has a strong focus on SME and corporate lending and retains a strong presence in the country’s retail segment.

Gem Maloku, Acting President of the Management Board of NLB Banka Prishtina, said: “We are extremely grateful to further extend our cooperation with the EBRD in support of one of our core values – contributing positively to the environment. This partnership shows a strong commitment to stimulating the green economy and promoting sustainable entrepreneurship throughout Kosovo. We are confident that this alliance will deliver outstanding results, allowing us to empower small and medium-sized enterprises on a green agenda and create a more promising future.”

The EBRD has invested €692 million in 115 projects across Kosovo since it started operating there in 2012.