$3M Energy Efficiency Funding for Azerbaijan

THE European Bank for Reconstruction and Development (EBRD) is lending $3 million to Muganbank to finance energy efficiency projects in Azerbaijan.

The money is provided for on-lending to qualifying corporate and individual customers, and will be used for energy efficiency and renewable energy projects, and it will allow Muganbank to help local entrepreneurs and households to acquire and install more energy efficient equipment. The funds will ultimately help those clients to reduce their energy bills and make their businesses and homes more cost-effective.

The loan is part of the EBRD’s Caucasus Energy Efficiency Programme (CEEP), which provides loans to local financial institutions to support industrial and residential energy efficiency improvements and renewable energy projects. Muganbank will be the EBRD’s third partner institution in Azerbaijan to secure an energy efficiency facility under CEEP.

The loan will be supported by grant funding from the European Union Neighbourhood Investment Facility, the EBRD Shareholder Special Fund and the Austrian Federal Ministry of Finance. The grants will be used for technical assistance and investment incentives for households.

The EBRD’s Head of Office in Baku, Neil McKain, said: “The EBRD has been working with Muganbank since 2006 to support financing of the real sector of the economy. This credit facility is a new product for Muganbank, as well as for the market in general and therefore will mark a new phase in our longstanding relationship. We are delighted to support Muganbank further with this credit facility that will help us reach diverse sectors and customers.”

Picture: Night panorama of Baku by Urek Meniashvili reproduced under CCL.

Thursday 2nd October 2014

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