New EBRD financing for energy efficiency investments in Moldova

By EBRD  Press Office
@ebrd

The EBRD is continuing to support sustainable energy investments in Moldova with a US$ 5 million loan to ProCredit Bank Moldova for on-lending to private companies. The facility will be used to finance energy efficiency and small renewable energy investments undertaken by small and medium-sized enterprises (SMEs), agribusiness and commercial services.

Moldova has one of the most energy and carbon intensive economies in the region, with high dependency on imports of primary energy. This places a substantial burden on the country’s economy and the environment.

The EBRD loan will allow ProCredit Bank Moldova to finance such investments as replacement of boilers, electrical motors, transformers, lighting, as well as onsite energy generation facilities, particularly those that combine heat and power generation, which will further help local businesses to reduce their energy consumption, and improve overall efficiency and competitiveness.

The loan is part of the EBRD’s second Moldovan Sustainable Energy Financing Facility (MoSEFF II), of €22 million, following the successful implementation of MOSEFF I project, amounting to €20 million.

MoSEFF II is complemented by grant support of €6.8 million, provided by the European Union, which will be used for technical assistance and investment incentives to sub-borrowers.

A member of the Germany-based global group of 21 banks, ProCredit Bank Moldova is a medium-sized commercial bank in Moldova, providing a full range of banking services to very small, small and medium clients.

“The loan reinforces the EBRD’s strong commitment to further improving the environment and making the economy more sustainable. As we implement this project we will also assist the Moldovan government, through policy dialogue, in introducing sustainable energy efficiency solutions and meeting the EU requirements,” said Henry Russell, EBRD Director for Financial Institutions in Western Balkans, Moldova and Belarus.

Care for the environment is an integral part of ProCredit Bank activity that is why we conduct a careful assessment of the impact that the businesses of our clients have on the environment. The EBRD credit line will help us to support  small and medium-sized businesses in Moldova to invest in energy efficient technologies, thus having a positive impact on the environment. Loans from this credit line will help companies to reduce their energy consumption, while keeping or improving the working conditions, quality of service or production process in their businesses,” said Eugenia Gashikulina, Deputy Chairperson of the Management Board of ProCredit Bank Moldova.

The EBRD, one of the largest investors in Moldova, has to date signed around 90 investment projects in the country, covering energy, transport, agribusiness, general industry and banking sectors, for a cumulative amount of almost €700 million.