Commercializing Energy Efficiency Finance (CEEF) - Tranche I

The project is a replication of the Hungary Energy Efficiency Co-financing Program. IFC will employ a contingent financing modality which uses GEF resources to leverage IFC and private capital. Under the Project, IFC will provide partial guarantees, and related credit enhancement mechanisms adapted to country market conditions, supporting the financing of energy efficiency (EE) projects by domestic financial institutions (FIs), as well as private project sponsors. IFC will serve as guarantor pursuant to guarantee facility agreements with participating local FIs. IFC resources will be combined with GEF funds as reserves supporting the guarantees. The Project includes a complementary technical assistance (TA) program to develop a pipeline of finance-ready EE projects and to build commercial capacities of EE businesses and participating FIs. The Project will mobilize local financial and EE industry resources and commercialize EE finance by engaging key parties -- FIs, EE and energy service company businesses and end-users -- to implement EE projects on commercial terms.