EBRD details approach to engaging private sector in green financing (Exclusive)

 Last year, we invested over 6.5 billion euros in climate, mobilizing around 25 billion euros from the private sector, said Alkis Vryenios Drakinos, Regional Head of the Caucasus for the European Bank for Reconstruction and Development (EBRD), in an interview with Trend.

"We have been successful so far in mobilizing a lot of investment from the private sector," Drakinos stated. "For every euro we have invested, we have mobilized more than three".

Drakinos attributed this success to careful project selection and maintaining strong relationships with the countries where the EBRD operates. "Every project that we finance is in countries that are interested, as these countries are our shareholders. As a result, the risk surrounding our projects is low. The projects we finance are supported, which helps reassure private-sector financial investors. They can then focus on the merits of the project itself".

He emphasized the importance of working with high-quality project sponsors. "The people we are financing have proven track records in delivering projects. They are known for meeting timelines and staying within budgets. There are no cost overruns, unless there are unexpected surprises, but these are rare," Drakinos explained.

The EBRD’s model of securing financing from both the bank and its partners, along with ensuring tariffs and other financial elements align with market conditions, has been a cornerstone of its success. "The bankability of the projects is also guaranteed because of the tariffs and other factors. We work in countries that can afford to purchase at the prices we have secured. It’s a proven model, and we will continue to use it in the future," Alkis Vryenios Drakinos concluded.