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EBRD and Raiffeisenbank promote energy efficiency in Bulgaria
€20 million loan for on-lending to private enterprise
The EBRD is lending Raiffeisenbank (Bulgaria) EAD €20 million to help promote
energy efficiency and renewable energy projects in private businesses across
Bulgaria. The loan falls under the Industrial Energy Efficiency and Renewable
Energy Framework Extension.
The loan will enable the bank to on-lend finance to private-sector industrial
enterprises to improve energy efficiency or implement a renewable energy
project. Eligible energy efficiency projects target better energy consumption,
automation, control and heat recovery systems while eligible renewable energy
investments include biomass, biogas, wind, run-of-the-river hydro, geothermal
and solar generators.
The first Energy Efficiency and Renewable Energy Framework was launched in
2004 by the EBRD together with the Kozloduy International Decommissioning
Support Fund (KIDSF) and the Energy Efficiency Agency of Bulgaria. This €50
million framework comprised of EBRD financing extended to six participating
banks. In 2006 the Bank approved a €55 million extension to the framework.
Financing is complemented by €20 million in grant funding – used for providing
rebates to clients who successfully complete projects – from the KIDSF, set up
in 2000 and administered by the EBRD.
Under the Energy Efficiency and Renewable Energy Framework, clients for energy
efficiency projects will be eligible for a rebate of 7.5 per cent from KIDSF
on the sub-loan amount, while clients investing in renewable energy projects
will for eligible for a 20 per cent rebate on the sub-loan amount.
The loan is the EBRD’s fourth to a member of the Raiffeisen group in Bulgaria.
In 2002 the Bank helped Raiffeisenbank (Bulgaria) on-lend finance to small and
medium-sized enterprises (SMEs), while a second loan in 2005 helped finance
residential energy efficiency and renewable energy projects. This loan has
enabled Raiffeisenbank (Bulgaria) to finance to date more than 800 loans to
households for energy efficiency improvements. The EBRD also works with
Raiffeisen Leasing Bulgaria to support SME-Lessees throughout the country.
The EBRD is the largest investor in Bulgaria, having committed nearly €.1.4
billion in 64 projects.
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