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EBRD and Raiffeisenbank promote energy efficiency in Bulgaria. €20 million loan for on-lending to private enterprises
15 August 2006
The EBRD is lending Raiffeisenbank (Bulgaria) EAD €20 million to help promote energy efficiency and renewable energy projects in private businesses across Bulgaria. The loan falls under the Industrial Energy Efficiency and Renewable Energy Framework Extension.
The loan will enable the bank to on-lend finance to private-sector industrial enterprises to improve energy efficiency or implement a renewable energy project. Eligible energy efficiency projects target better energy consumption, automation, control and heat recovery systems while eligible renewable energy investments include biomass, biogas, wind, run-of-the-river hydro, geothermal and solar generators.
The first Energy Efficiency and Renewable Energy Framework was launched in 2004 by the EBRD together with the Kozloduy International Decommissioning Support Fund (KIDSF) and the Energy Efficiency Agency of Bulgaria. This €50 million framework comprised of EBRD financing extended to six participating banks. In 2006 the Bank approved a €55 million extension to the framework. Financing is complemented by €20 million in grant funding – used for providing rebates to clients who successfully complete projects – from the KIDSF, set up in 2000 and administered by the EBRD.
Under the Energy Efficiency and Renewable Energy Framework, clients for energy efficiency projects will be eligible for a rebate of 7.5 per cent from KIDSF on the sub-loan amount, while clients investing in renewable energy projects will for eligible for a 20 per cent rebate on the sub-loan amount.
The loan is the EBRD’s fourth to a member of the Raiffeisen group in Bulgaria. In 2002 the Bank helped Raiffeisenbank (Bulgaria) on-lend finance to small and medium-sized enterprises (SMEs), while a second loan in 2005 helped finance residential energy efficiency and renewable energy projects. This loan has enabled Raiffeisenbank (Bulgaria) to finance to date more than 800 loans to households for energy efficiency improvements. The EBRD also works with Raiffeisen Leasing Bulgaria to support SME-Lessees throughout the country.
The EBRD is the largest investor in Bulgaria, having committed nearly €.1.4 billion in 64 projects.
