Baku, Azerbaijan, June 2
By Emin Aliyev - Trend:
European Bank for Reconstruction and Development will provide Azerbaijani DemirBank with a loan of $5 million to finance energy efficiency projects.
The bank will direct the allocated funds for lending to individuals and legal entities wishing to invest in improve energy efficiency. The EBRD Board of Directors is expected to approve the allocation of funds in June 25.
"The project will contribute to strengthening the customer base of Demirbank and allow the bank to continue to compete successfully in the local market by providing customers with new products and offers of medium-and long-term financing," the report said.
The loan is part of the EBRD program on the energy efficiency in the Caucasus region- "Caucasus Energy Efficiency Program" (CEEP), which started in July, 2007.
Demirbank became the first of the three banks in the country, which, as previously EBRD`s Baku Office head Neal McCain told Trend, will be allocated similiar loans.
All of these measures are the part of the new strategy of EBRD`s activity in Azerbaijan approved in late April, he added.
Furthermore, in March 2013, the EBRD signed its first loan on energy efficiency with one of the Azerbaijani banks - "AccessBank" - within the framework of the energy efficiency program in the Caucasus region. A loan in the amount of $ 4.2 million has been allocated within the framework of the agreement, which will be directed at the reconstruction of the bank`s head office with total area of 9,840 square meters. EBRD loan will cover 30 percent of the project cost, and the remainder will be paid by the bank itself.
EBRD is a shareholder of the three banks in Azerbaijan - DemirBank, AccessBank and UniBank.
Since 1991, the EBRD has allocated about 1.8 billion euros for 146 projects in Azerbaijan; about half of the funds are directed at the private sector.
Edited by CN