YEREVAN, July 9. / ARKA /. HSBC Bank Armenia and the European Bank for Reconstruction and Development (EBRD) signed July 4 a loan agreement in the amount of $10 million for the production of renewable energy in Armenia’s residential and industrial sectors, EBRD press office said today to ARKA.
It said the HSBC Bank Armenia will lend the money to those corporate borrowers, which intend to make investments in energy efficiency and renewable energy production projects.
“From now on corporate clients of HSBC Bank Armenia will be able to take this opportunity to fund production of “green “energy,” according to an EBRD press release.
Under the agreement, funding will be provided to companies which are going to make capital investments in their facilities, equipment and other fixed assets to increase their total efficiency and energy efficiency rates to at least up 20%.
The maximum loan repayment term is 5 years. The credit is a part of a bigger EBRD-led Caucasus Energy Efficiency Program (CEEP), a dedicated credit line facility to finance energy efficiency and renewable energy projects in the Caucasus aimed at end-users in the industrial sector, renewable energy sources developers and the residential sector.
CEEP has got also additional grants from the Austrian ministry of finance in the amount of 4.6 million euros, from the EU’s Community Infrastructures (NIF) program in the amount of 4.7 million euro and from the EBRD Shareholder Special Fund (EBRD SSF) in the amount of 1.2 million euro.
“The agreement between HSBC Bank Armenia and EBRD demonstrates the growing cooperation between the two institutions”, the press release says.
HSBC Bank Armenia’s credit portfolio stood at $317 million as of April 1, 2014. HSBC Bank Armenia is a member of the HSBC Bank plc, registered in Armenia in September 1995. Its shareholders are HSBC Europe BV (70%) and Wings Establishment (30%). In 2009 HSBC Bank Armenia joined NASDAQ OMX Armenia stock exchange.
Since the beginning of its operations in Armenia in 1992, the EBRD has invested over €688 million in 129 projects in the countries financial, corporate and energy sectors, and infrastructure. -0-
