Kyrgyz Investment and Credit Bank (KICB) will receive a loan of US$ 5 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 loan agreement during his visit to Bishkek, EBRD First Vice President Phil Bennett said: “We are very committed to energy efficiency and sustainable energy in the Kyrgyz Republic and proud to work with KICB, our long-time partner bank, on reducing energy consumption to improve energy security in the country. The EBRD is already supporting those efforts by channeling financing via local banks, KICB and others. We are also continuing our policy dialogue with the government to open the renewable energy sector to private investors.”
KICB is one of the leading banks in the Kyrgyz Republic. The EBRD has been cooperating with the bank, in which it also holds an equity stake, since 2001. One of the latest EBRD projects with KICB was the participation in a pilot corporate bond issue in som in September last year.
Kwang Young Choi, CEO of KICB, said: “This is the second credit facility under the KyrSEFF programme, which demonstrates our commitment to promote energy efficiency initiatives in the Kyrgyz Republic. Being one of the leading banks in the country, KICB aims to promote banking products which are essential for sustainable energy efficiency and result in lower energy consumption, switch to renewable energy resources and reduced energy production and consumption costs”.
The 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 financing 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 in 1992, the EBRD has invested about US$ 637 million in the country’s economy through 112 projects supporting various sectors and industries in the country.
Overall the EBRD has invested well over €13 billion into sustainable energy projects throughout its region since 2006.