Green Forum • 20 August, 2024 at 7:05 PM
BRD Groupe Société Générale has entered into a new partnership agreement with the European Investment Fund (EIF) to guarantee loans that finance sustainable projects. SMEs and small enterprises with medium market capitalization will be eligible for loans of up to 15 years to finance green investments.
“As part of its sustainability strategy, BRD Groupe Société Générale has signed a new partnership agreement with the European Investment Fund (EIF) to support businesses in Romania in their ecological transition,” announces BRD.
The Sustainability Financial Instrument is a portfolio guarantee product (RRF Sustainability Portfolio) under the financial instruments pillar of the National Recovery and Resilience Plan (NRRP). It aims to support companies and business processes in adapting to climate change and the green transition, having a major impact on quality of life and contributing significantly to the EU's goal of achieving climate neutrality by 2050.
“BRD is ready to use its experience in the sustainable transformation of the economy, supporting Romanian companies and their business processes in adapting to climate change and the green transition,” said Lidia Capmare, Director of the European and National Programs Department at BRD.
Through the sustainability instrument, the bank aims to achieve two main objectives: supporting investments that contribute to the ecological and sustainable transformation of the economy by facilitating access to banking finance for eligible beneficiaries; and supporting investments aimed at improving the accessibility of services, products, and infrastructure, as well as developing assistive technologies and adapting business infrastructure to enhance accessibility for clients and employees with disabilities or impaired functionality.
Thus, SMEs and small enterprises with medium market capitalization will be able to benefit from loans of up to 15 years for the following categories of investments:
Green investments (climate change mitigation, climate change adaptation, transition to a circular economy, investments related to environmental impact and sustainable management of natural resources, biodiversity, and ecosystem protection and restoration);
Green investments in agriculture and forestry;
Investments in social accessibility services.
Due to EIF's participation in credit risk, loan conditions (interest rates, down payments, additional guarantee requirements, etc.) are more favorable than standard terms.