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August 13, 2022

Garanti BBVA Consumer Finance becomes the first non-banking financial institution in the consumer finance segment to receive a EUR 10 million loan from IFC for green financing

Garanti BBVA Consumer Finance, part of Garanti BBVA Group Romania, one of the most dynamic financial groups on the local market, has signed a loan agreement of EUR 10 million with the International Finance Corporation (IFC), aiming to help Romanians reduce their homes’ carbon footprints.

Through the new agreement, Garanti BBVA Consumer Finance has become the first non-banking financial institution (NBFI) active in this segment in Romania to receive funding for green financing from IFC, a member of the World Bank Group.

The EUR 10 million loan will allow Garanti BBVA Consumer Finance to provide advantageous financing to individuals who choose to invest in products that contribute to the protection of environment, respectively a wide range of energy efficient A+++ energy class domestic appliances, and energy-efficient improvements for their houses and apartments, such as envelope insulation, energy efficient windows and roof-top solar photovoltaics (PV) panels. Moreover, money can also be used to buy electric and hybrid vehicles, e-scooters or e-bicycles.

Climate change is a serious challenge to human existence and nature, and we cannot stand aside. The agreement with our long-term partner, IFC, will help us grow our green loan portfolio, thus supporting more Romanians and country`s climate goals,” stated Tolga Banyocu, General Manager at Garanti BBVA Consumer Finance. “We are convinced that every input, no matter how minor, is essential for our future and the next generations.

Garanti BBVA Group has had a long-term partnership with IFC and has received over the years several loans from the financial institution. Yet, this is the first time the money is aimed at financing individuals planning sustainable acquisitions and thus contributing to protecting the environment.

In addition to investment, IFC will assist Garanti BBVA Consumer Finance to build-up company capacity and knowledge for development of green lending products by providing training in climate finance lending procedures as well as market analysis to help the company identify future opportunities.

IFC is committed to helping Romania accelerate its green transition and this operation will help promote consumer finance as part of the available tools for climate financing,” said Vittorio Di Bello, IFC’s Regional Head of Industry for Financial Institutions in Europe. He added, “We hope to demonstrate how non-banking financial institutions can engage in this space, to help diversify product offerings in the financial sector and boost private sector growth.

Romania remains behind its European Union (EU) peers in terms of air quality, intensity of energy use, and waste management. Further, the Romanian economy consumes 2.5 times more energy per gross domestic product (GDP) unit than the average in the EU, with households accounting for 33 percent of the total energy consumption as of 2018, a press release issued by IFC informs.

IFC has supported private sector development in Romania for over 30 years, with a committed exposure reaching USD 1,114 billion as of June 2021.



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