RSECF - Russian Sustainable Energy & Carbon Finance Facility

Sub-projects signed under this framework

Project Description

The EBRD is considering a EUR 300 million framework facility under which the EBRD would extend credit lines to Participating Banks (PBs) for on-lending to private sector companies for sustainable energy projects in the industrial sector. It is envisaged that 6-7 Russian banks will be PBs under the framework. Discussions are currently taking place with potential participants.

Transition Impact

The project is expected to transfer and build expertise, among both banks and companies, related to energy efficiency and carbon finance. The banks will develop expertise in assessing the risk and creditworthiness of clients for energy efficiency loans, while the enterprises are expected to become more familiar with bank requirements for providing energy efficiency loans and carbon finance process. The project is expected to have two sources of transition impact:

i) demonstration of the benefits of rational energy usage;
ii) transfer of skills (to the PBs and sub-borrowers)

The Client

The clients will be Russian banks which will on-lend the funds to primarily industrial sub-borrowers planning to undertake sustainable energy investments in the private sector.

EBRD Finance

Senior loans of up to an aggregate of EUR 300 million to be allocated to PBs in Russian Federation.

Project Cost

EUR 300 million from EBRD.

Environmental Impact

FI screened operation. This project will contribute to improved efficiency in the use of heat and energy and will lead to a reduction of air pollutants (e.g., SO2; NOx; CO2; particulates), including released during industrial production. PBs will require that companies financed through framework comply with national requirements for environment, health and safety. This will be confirmed to the PBs by the consultant who will cover this issue as part of assessment of each project (see Technical co-operation section below for more information). Reporting on sub-projects and annual monitoring reports will be provided by PBs.

Technical Cooperation

It is expected that the TC assignment will be funded by the EBRD Shareholder Special Fund and by Germany's Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU). Project Consultant will be contracted by the Bank to cover the following scope of TC:

a. provide overall project coordination
b. provide initial training to PBs, including training on carbon financing
c. proactively work with PBs in reviewing their client base and identify a pipeline of potential projects
d. promote the Facility through marketing campaigns
e. identify individual opportunities through a dedicated energy audit (“EA”) comprising site visits, energy performance assessment, cost-benefit analysis of technically feasible investments
f. assess compliance of each proposed project or set of projects with applicable environmental and health and safety laws and standards
g. advise on the eligibility of the sub-projects proposed to be financed under the Facility
h. monitor the performance of the Facility and the sub-projects.

Company Contact

Kiyoshi Nishimura, Senior Banker, Financial Institutions Team
EBRD, One Exchange Square, London EC2A 2JN
Tel. +44 (0)20 7338 7409
Fax: +44 (0)20 7338 6119
E-mail: NishimuK@EBRD.com