EBRD to lend USD 10m to back renewables in Armenia

Jul 14, 2014 - The European Bank for Reconstruction and Development (EBRD) will extend USD 10 million (EUR 7.3m) to HSBC Bank Armenia CJSC to support local power efficiency and renewable energy investments.

The parties have signed the loan agreement on July 4, EBRD said in a press release today. The Armenian unit of UK lender HSBC Holdings Plc (LON:HSBA) will be lending the money to clients from the industrial and residential renewable energy sectors. It is targeting companies that seek to cut their energy consumption by more than 20% through capital investments. EBRD noted that the maximum tenor of these loans is set at five years.

with the move, the EBRD aims to help lower the energy intensity of Armenia's economy and promote energy efficiency investments in various industries, including power and energy, agriculture and environmental infrastructure, the lender explained.

The loan to HSBC was agreed under EBRD’s Caucasus Energy Efficiency Programme (CEEP), which is complemented by grants such as EUR 4.6 million for technical assistance provided by the Austrian Ministry of Finance, EUR 4.7 million from the European Union Neighborhood Investment Facility and EUR 1.2 million from the EBRD Shareholder Special Fund (SSF).

(USD 1.0 = EUR 0.734)

Choose your newsletter by Renewables Now. Join for free!