The European Bank for Reconstruction and Development (EBRD) has granted a EUR 40 million loan to Romanian lender Banca Transilvania, to support financing investments in energy efficiency.

Banca Transilvania will use the money from this loan to finance households, housing associations and service providers that plan to invest in increasing the energy efficiency of residential buildings, according to a statement from EBRD.

The financing is part of the EBRD’s newly launched Green Economy Financing Facility (GEFF) for Romania, a programme with a volume of up to EUR 100 million to finance green investments in Romania. The framework will initially comprise EUR 50 million from the EBRD’s own funds, while the TaiwanICDF, which is in charge of Taipei China’s overseas development programme, has committed USD 20 million to date.

Banca Transilvania is the first bank to on-lend EBRD funds targeting energy efficiency in the residential sector, but several other Romanian banks are expected to join the programme.

“Most of Romania’s residential buildings were built between 1960 and 1990 with low thermal insulation. While energy efficiency improvements are urgently needed, access to finance for such investments remains limited. We are happy to offer a new financing product that addresses this issue and very pleased to sign ‎the first project with Banca Transilvania,” said Matteo Patrone, EBRD regional director for Romania and Bulgaria.

Romania remains one of the most energy-intensive EU countries, according to EBRD. Its residential sector accounts for 36% of the country’s final consumption, the highest among all sectors, while the EU average is 24%.

Established in 1994, Banca Transilvania is the second-largest bank by total assets in Romania. The EBRD has been a significant shareholder since 2001.

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Irina Popescu, irina.popescu@romania-insider.com