The UK-based European Bank for Reconstruction and Development (EBRD) recently launched an energy efficiency credit line valued at USD 100 million to be on-lent via local private banks to benefit individual Russian households, housing associations, management companies, maintenance service providers, condominiums and energy service companies (ESCOs). Center-Invest Bank, a Rostov-based financial institution that provides corporate and retail services, is the first bank to sign up for the EBRD program, borrowing RUB 750 million (USD 24.2 million) to lend to its clients in southern Russia. The program is supported by technical assistance of up to EUR 4 million (USD 5.2 million) funded by the Austrian government.
The program is part of the Sustainable Energy Initiative that was launched by ERBD in 2006 in an effort to address issues of energy efficiency and climate change by promoting sustainable energy investments. The residential sector in Russia reportedly uses three times more energy per square meter than housing in EU countries with similar weather conditions.
As of 2013, Sustainable Energy Initiative has invested EUR 2.2 billion (USD 2.9 billion) in Russia, resulting in annual savings of 9 million tons of oil and a reduction of 17.5 million tons of greenhouse gas released.
By Jennifer Young, Research Associate
About European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion).
About Center-Invest Bank
Founded in 1992, Center-Invest Bank is a Russian private bank focusing on the southern regions of the country. The bank operates 140 branches in southern Russia. For the year 2011, Center-Invest Bank reported total assets of RUB 54.5 billion (USD 1.81 billion).
Sources and Additional Resources
European Bank for Reconstruction and Development Story: “EBRD Energy Efficiency Funding for Russian Homes”
http://www.ebrd.com/pages/news/press/2013/130424a.shtml
MicroCapital Story: “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development Loans $197m to Turkey’s Isbank to Support Small, Medium-sized Enterprises, $350m to Turkish Banks for Energy Efficiency,” April 17, 2013.
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-loans-197m-to-turkeys-isbank-to-support-small-medium-sized-enterprises-350m-to-turkish-banks-for-energy-efficiency/
MicroCapital Story: “MICROCAPITAL BRIEF: EBRD Plans $200m to Expand Turkish Sustainable Energy Finance Facility (TurSEFF) for Small and Medium-sized Enterprises, Private Households”, March 8, 2013.
https://www.microcapital.org/microcapital-brief-ebrd-plans-200m-to-expand-turkish-sustainable-energy-finance-facility-turseff-for-small-and-medium-sized-enterprises-private-households/
MicroCapital Story: “MICROCAPITAL BRIEF: Minsk Transit Bank, Belgazprombank of Belarus Access $50m Facility for SME Energy Efficiency from European Bank for Reconstruction and Development,” February 25, 2013.
https://www.microcapital.org/microcapital-brief-minsk-transit-bank-belgazprombank-of-belarus-access-50m-facility-for-sme-energy-efficiency-from-european-bank-for-reconstruction-and-development-erbd/
MicroCapital Story: “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Lends $70m to Garanti Bank of Turkey, Hipotekarna Banka of Montenegro, Bai Tushum of Kyrgyz Republic,” November 14, 2012.
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-lends-70m-to-garanti-bank-of-turkey-hipotekarna-banka-of-montenegro-bai-tushum-of-kyrgyz-republic-2/
MicroCapital Story: “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Promote Energy Efficiency Through Memorandum of Understanding (MOU) with Government of Bulgaria, $9.7m Loan to Moldovan Bank BCR Chisinau”, March 8, 2011.
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-promote-energy-efficiency-through-memorandum-of-understanding-mou-with-government-of-bulgaria-9-7m-loan-to-moldovan-b/
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
MicroCapital Universe Profile: Center-Invest Bank
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Center-Invest+Bank
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