Demir Kyrgyz International Bank (DKIB) will receive an EBRD loan of US$ 4 million, which will then be used for on-lending to companies and households for energy efficiency improvements, such as modernisation of equipment or insulation.
Signing the deal during his visit to Bishkek, the EBRD’s First Vice President, Phil Bennett, said: “We are very committed to energy efficiency and sustainable energy in the Kyrgyz Republic as well as other countries. The EBRD has invested well over €13 billion, or US$ x billion, into sustainable energy projects throughout its region since 2006. In the Kyrgyz Republic, we are proud to work with DKIB, our long-time partner institution, on reducing energy consumption here to improve energy security.”
Sevki Sarilar, the General Manager of DKIB, said at the signing: “KyrSEFF is one of our most important products, which we implemented in Kyrgyzstan with the support of our good partner and shareholder, the EBRD. KyrSEFF brings benefits not only for companies but also for individuals and households and of course the economy as a whole. As one of the largest banks in Kyrgyzstan, we are glad to offer our clients financing via KyrSEFF, and we hope to continue our cooperation.”
DKIB is the third largest bank in Kyrgyz Republic. The EBRD has been cooperating with the bank, in which it also holds an equity stake, since 1997.
The framework under which the loan is being made, Kyrgyz Sustainable Energy Financing Facility, is one of the EBRD’s range of instruments to finance energy efficiency and small-scale renewable energy projects in the region. KyrSEFF offers credit lines and technical assistance to local banks, to enable them to finance small-scale sustainable energy projects. KyrSEFF is supported by the European Union’s Investment Facility for Central Asia (IFCA).
Since the beginning of its operations in the Kyrgyz Republic, the EBRD has invested close to €470 million (US$ 637 million) in the country’s economy through 112 projects supporting various sectors and industries in the country.