GGF is stepping up investments providing Victoriabank in Moldova with Tier II subordinated financing

GGF is stepping up investments providing Victoriabank in Moldova with Tier II subordinated financing

• 23.10.2024

• Loan investment to bring the Fund’s portfolio to EUR 1 billion
• GGF committed to boost the strength and resilience of the financial sector in Moldova and accelerate the country’s green transition
• GGF is one of the largest blended finance climate action funds focused on emerging markets

Chișinău, October 23, 2024 – The Green for Growth Fund (GGF) is providing a Basel III compliant Tier II subordinated loan of EUR 10 million equivalent in local currency to Victoriabank, the third largest bank in Moldova. The purpose of the loan is for on-lending to businesses and households investing in energy-efficiency, renewable-energy and climate-resilience measures. 

 This also marks the EUR 1 billion investment portfolio for GGF.  

The 7-year financing in local currency will be used to strengthen Victoriabank’s already robust capital position, implement its growth ambitions and advance energy efficient and renewable energy investments in the country, accelerating its green transition. The partnership with GGF is estimated to contribute to annual primary energy savings equivalent to the annual energy requirements of 891 Moldovan households. 

By fostering access to green finance, the GGF’s loan investment will help businesses and households in Moldova reduce energy consumption, lower carbon emissions, and contribute to the sustainable development of the country’s economy.  

Simon Gupta, Chairperson of GGF Board of Directors, present at the signing ceremony in Chișinău, said: “It is great to be in Chișinău to welcome Victoriabank as a strategic partner to GGF and, with this loan investment, also mark the EUR 1 billion milestone achievement for the Fund’s portfolio. We are confident that this new partnership has a big potential to accelerate the adoption of energy-efficient and renewable-energy solutions, essential for Moldova’s energy independence and sustainable future.”  

Borislav Kostadinov, Fund Director of GGF at Finance in Motion added: “This partnership with Victoriabank reflects our commitment to driving sustainable economic growth in Moldova through green finance and I am glad that with this investment, the Fund's portfolio has been brought to EUR 1 billion. Through the advisory services managed by Finance in Motion, we are empowering local institutions like Victoriabank to offer businesses the resources they need to invest in energy efficiency and renewable energy solutions. Together, we are fostering a long-term transition toward a greener, more sustainable future for Moldova.” 

Levon Khanikyan, CEO of Victoriabank stated: “This financing agreement with the Green for Growth Fund is a significant milestone in our sustainability strategy at Victoriabank. The EUR 10 million will enable us to empower local entrepreneurs to invest in impactful green projects, promoting both economic growth and environmental responsibility in Moldova. We truly value our partnership with GGF, which helps us in our mission to foster a more sustainable future for the country” 
 

About GGF  

The Green for Growth Fund promotes energy efficiency and renewable energy in Southeast Europe, the Caucasus, the Middle East, and North Africa. By providing refinancing to local financial institutions, GGF helps businesses and households access sustainable energy solutions, fostering energy efficiency and reducing carbon emissions. GGF was initiated as a public-private partnership by the European Investment Bank and Germany’s KfW Development Bank, with financial support from the European Union, BMZ, and other international investors. Finance in Motion GmbH, Germany, serves as GGF’s advisor. For more information on the Green for Growth Fund, please visit: www.ggf.lu   

About Finance in Motion 

Finance in Motion is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The company structures, manages, and advises impact investment funds that bring together public and private investors to address climate change, strengthen biodiversity conservation, foster the sustainable use of natural resources, improve livelihoods, and promote economic opportunities. For more information, please visit: www.finance-in-motion-com    

About Victoriabank 

With 35 years of experience in the Moldovan market, Victoriabank is one of the most solid banks in the country. We are an innovative Moldovan brand known for introducing the first bank card, the first ATM, the first mobile application, and the first loan for small entrepreneurs. Since 2018, we have been part of the largest financial group in Romania—Banca Transilvania. 

Victoriabank is actively involved in supporting business development in the country, particularly by assisting SMEs through banking products and services designed to help companies become more competitive and seize new export opportunities. As a leader in banking innovation, we offer our customers access to 100% online services, including account opening, KYC updates, loan applications, and fast T2A transfers. With a customer base of over 310,000, the Victoriabank network includes 68 branches and over 250 ATMs. 

For more information about Victoriabank and details about the products and services we offer, please visit our official website. 

Media Contacts: 
 
GGF:Nusha Westhoff 
Director Marketing & Communications 
Mobile: +49 69 271 035-789 
press@ggf.lu / press@efse.lu 

Victoriabank:  
Mihaela Baciu  
PR & Communications  
​Phone: 030303305; +373 68 289 214 
Email: pr@vb.md  

Victoriabank

VictoriaBank is the First Commercial Bank in Moldova, which since the beginning of its activity on December 22nd, 1989, initiated the process of developing a banking system in Moldova. The name of VictoriaBank is related to innovations and continuous development of banking and financial possibilities. Established as reliable and economically stable, it has demonstrated over time that only by creating competitive products, investing in qualitative services, motivating the staff and building a strong and dynamic team will ensure the efficiency and the profitability of the Bank. Year after year, VictoriaBank records new achievements and important successes that places it on the dominant positions among commercial banks in the country. The share volume of the banking card transactions in the Republic of Moldova increased in 2013 to 21%. The market share of fast transfers reached 23% and loans and deposits increased by 17% each. VictoriaBank has a loan portfolio of approximately 6,5 million lei and the Bank assessts consist of 11,7 million lei. The share of foreign shareholders in the bank|s capital consists of more than 50%. The Bank is continuously valued for the implementation of new banking technologies, which provide customer service at the highest level, individual approach to each client and for a diverse portfolio of banking products and services. Meanwhile, the wide network of over 100 subdivisions ensure a prompt response to customer requests and a strong brand image whose reputation is confirmed by the numerous awards and significant results. For several times, VictoriaBank was nominated the "Bank of the Year" by the prestigious British magazine - "The Banker", also it is cataloged as one of the largest banks in South East according to the classification SeeNews SEE TOP 100 Banks.