HSBC clients in Armenia can now benefit from funding for green energy projects. On 4 July 2014 an agreement was signed between the European Bank for Reconstruction and Development (EBRD) and HSBC Bank Armenia CJSC for a US$ 10 million loan to be directed to the industrial and residential renewable energy sectors. The funds will allow HSBC Armenia to support its borrowing clients in their energy efficiency and renewable energy investments.
These funds will be lent to companies willing to make capital investments in their equipment, machinery and other fixed assets aimed at achieving overall energy efficiency and reductions of over 20 per cent in their energy consumption. The maximum tenor of the loans is five years. This facility falls under the EBRD’s Caucasus Energy Efficiency Programme (CEEP), which has been developed to encourage firms to make better use of their country’s energy resources.
This initiative aims to help Armenia reduce the energy intensity of its economy and promote energy efficiency investments in various sectors, such as power and energy, industry, agriculture, municipal and environmental infrastructure, property and the residential sector.
CEEP is complemented by grants including €4.6 million for technical assistance provided by the Austrian Ministry of Finance, €4.7 million from the European Union Neighborhood Investment Facility and €1.2 million from the EBRD Shareholder Special Fund (SSF). Eligible projects under CEEP may receive investment incentives of up to 15 per cent of the eligible loan amount .
The deal highlights the growing partnership between the EBRD and HSBC in identifying business opportunities and deepening relationships with established, high-performing clients.
HSBC Bank Armenia CJSC has a commercial lending portfolio of US$ 317 million ( first quarter of 2014) and has registered strong results for in recent years. HSBC Commercial Banking operates in nearly 60 countries and territories and is a core part of HSBC’s business.
The EBRD has been one of the largest investors in Armenia since the country’s independence. The Bank has invested over €688 million in 129 projects in the country’s financial, corporate, energy and infrastructure sectors.