The FINANCIAL — The EBRD raised a total of €946 million from donors in 2017 to support its investments in 38 economies across three continents, improving the lives of millions of people.
This fundraising effort results in more resources for blended finance, which combines grants and EBRD financing with commercial finance, crucial to boost private sector investment and to achieve the UN Sustainable Development Goals (SDGs) worldwide.
Launched in 2015 as a blueprint for global development for the following 15 years, the SDGs set ambitious targets for economic transformation, climate action and better quality of life that cannot be funded from state finance alone.
“The 2030 deadline for the SDGs is fast approaching and the international community agrees that the involvement of the private sector will determine the difference between success and failure in meeting it. The EBRD, with its private-sector business model, is skilled in leveraging private finance and the great support showed by donors will help us boost more development,” said the President of the EBRD, Sir Suma Chakrabarti.
Donor funds are entrusted to the EBRD by governments, institutions and private sector actors to improve social, environmental and governance standards in sectors including the green economy, infrastructure and private sector development. Currently, about 40 per cent of the Bank’s investments are supported by grant resources
Out of the total funds mobilised, €505 million are from climate funds, mainly from the Green Climate Fund, in the form of concessional finance. The European Union remained the largest grant donor with €313 million in grants for co-financing and technical assistance and €53 million were secured from other bilateral donors.
In addition, €70 million of grants raised in 2017 were for funds managed by the EBRD that will also benefit the work of other international financial institutions like the Eastern Europe Energy Efficiency and Environment Partnership (E5P) and the Western Balkans Investment Framework, according to the EBRD.
Donor funds and EBRD finance have an impact on advancing climate action, improving water and sanitation, promoting gender equality, creating jobs, driving innovation in the private sector and regulations as well as boosting economic growth.
In 2017, donor funds were used in all the regions where the Bank invests, with an emphasis on the Early Transition Countries in eastern Europe and Central Asia, the southern and eastern Mediterranean and the Western Balkans. Most resources were dedicated to support financial institutions; to credit lines dedicated to green investments and SME development; and to infrastructure, policy reform and inclusion projects.