EBRD designed GEFF to be a flexible financing facility for participating financial institutions (PFIs), who were enabled to choose how to lend to help households become greener. Options included lending to:
All three PFIs chose to set up only lending products for individual borrowers:
Banca Transilvania created three products
Although BT exhausted its €40 million EBRD funding in 2019 it continues to offer green home mortgages today.
UniCredit Bank (UCB) created:
Although UCB exhausted its entire €35 million EBRD funding in 2018, it continues to offer green mortgages today.
UniCredit Consumer Financing (UCF) created
An initial €10 million of EBRD financing was used help UCF’s customers buy energy efficient household products and materials such as refrigerators, freezers, air conditioners, lighting, boilers, home insulation and windows. The product was set up in 2019, and reached its €10 million lending target in the spring of 2020, just as the Covid-19 pandemic started.
UCF went on to borrow another €15 million from EBRD, and, following an 18-month break, re-launched its successful green consumer loan product, raising its total GEFF portfolio to €25 million by the summer of 2022.
In total, this residential GEFF extended €100 million of green lending to households in Romania in the form of 1,334 green home mortgages and 6,861 green consumer loans.