The KredEx Fund aims at providing revolving project finance, in order to improve energy performance and living conditions of estonian apartment buildings.
The ‘KredEx Revolving Fund’, or ‘KredEx Fund’, a revolving energy efficiency fund founded in 2009, is part of the KredEx Foundation, a government owned non-profit provider of financial services established in 2001 by the Estonian Ministry of Economic Affairs and Communications (MoEAC). The revolving Fund’s funds have been provided by the European Regional Development Fund (ERDF), the Government of the Republic of Estonia (GRE), the Council of Europe Development Bank (CEB) and by the KredEx Foundation.
The KredEx Fund aims at providing revolving project finance, under the “Apartment building renovation loan programme” to multi-family apartment building owners and housing associations in Estonia who wish to improve the energy performance and living conditions of their homes, achieve substantial energy savings and reduce their energy consumption. It also administers grants in the energy efficiency and housing sector on behalf of the Estonian national and local authorities.
Initial funding of about 49 M€ through three sources: 1) CEB: 28,8 M€ (loan), guaranteed by the GRE; 2) ERDF via Regional Operational Programme: 17 M€ (grant); 3) KredEx: 3,2 M€. Additional funding in May 2013 of 16 M€ from the GRE (loan) and 7 M€ from KredEx, thus achieving 72 M€.
Evidence of success
Renovation of 615 apartment buildings with a total programme investment value of almost 103 M€. The average savings achieved with the reconstruction works is about 40 %, above the initial targets of 20-30 %.
Potential for learning or transfer
In-house availability of nearly all expertise within a single subject, namely KredEx, with an effort from the intermediary banks during the loan application process. This allowed to keep the fund running and to mantain administrative costs rather low. KredEx acts as marketer, assessor and financier. It coordinates the functioning of the revolving fund and operates in accordance with the tasks laid down in the agreement with the Ministry of Economic Affairs and Communications.