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Sustainability-linked loan of 6 million euros to Uje Rugove, Kosovo’s leading bottled water producer -
Environmental objectives introduced as part of the loan structure -
Procedures to help the company expand and modernize its production and product range
THE European Bank for Reconstruction and Development and the Enterprise Expansion Fund II Western Balkans (ENEF II) provide a sustainability-linked loan of 6 million euros to Uje Rugove, Kosovothe country’s leading bottled water producer, to help the company improve its competitiveness and expand its operations.
Uje Rugove will use the loan proceeds to purchase a new facility and install high-capacity production lines as part of its plan to introduce new product categories in sustainable packaging. This work will enable the company to expand its product range and become more competitive in the Kosovar and export markets.
This project is the first example in Kosovo of a green financing instrument, which integrates climate and environmental, social and governance (ESG) standards as well as risk considerations into the financing structure.
The loan has three environmental objectives: reducing water loss during production, reducing packaging waste during production and introducing stretch film and labels made from at least 50% recycled polyethylene into its packaging.
Uje Rugove is also committed to implementing higher environmental, health and safety standards.
EBRD Head for Kosovo, Sergiy Maslichenko, said: “We are pleased to support the agro-industrial sector in Kosovo by signing an innovative ESG-linked financing agreement for this project with a market leader.
Visar Kelmendi, Chairman of the Board of Directors of Uje Rugove, added: “This sustainability-linked loan not only marks a pivotal moment for Uje Rugove, but also for Kosovo as a whole. It demonstrates our unwavering commitment to reducing water consumption in our production, minimizing packaging waste and incorporating sustainable and recycled materials into our packaging. This not only aligns with our strong commitment to the environment and health and safety excellence, but also sets a standard for sustainability in our industry, demonstrating that economic growth and environmental responsibility can go hand in hand.
ENEF II is part of the Investment framework for the Western Balkanssupported by the European Union And bilateral donors. It provides development and expansion capital to high-growth companies committed to improving their ESG performance across the six Western Balkan economies.
ENEF II is a new investment fund, created with the support of the European Union (EU). It is advised and managed by the EBRD. Dedicated to small, medium and mid-sized businesses in the Western Balkans, ENEF II has raised €57 million in capital commitments from its investors, including the EU, Italian development bank Cassa Depositi e Prestiti and the German development bank KfW. The EBRD has committed €19 million to the fund, while KfW and the EU provide first loss risk cover.
Kosovo’s agri-food sector has great potential for growth, with sub-sectors such as the beverage industry and champions such as Uje Rugove offering regionally competitive quality products.
To date, the EBRD has invested €629 million in Kosovo.