Businesses, including energy service companies (ESCO), and municipalities in Serbia have a new source of energy efficiency finance thanks to a EUR 15 million loan from the European Bank for Reconstruction and Development (EBRD) to be on-lent by Banca Intesa, the country’s largest bank, according to news releases from the two financial institutions.
Businesses and municipalities looking to improve energy efficiency will be able to take out loans from Banca Intesa specifically for green technology solutions such as lighting upgrades, new production equipment, building insulation, solar PV panels, and biomass boilers.
The loan is extended under the second phase of the Western Balkans Sustainable Energy Financing Facility (WeBSEFF II), a programme that provides credit lines to partner banks in the Western Balkans for on-lending to businesses and municipalities keen to invest in energy efficiency and small-scale renewable energy projects, the EBRD said.
We’re boosting #energyefficiency for ?? #Serbian #SMEs and cities with a new €15 million loan, together with @EU_near and in partnership with @Ener_Community ? https://t.co/KSuJ2E9xeU pic.twitter.com/zcv3U52IhQ
— GEFF (@ebrd_geff) October 23, 2018
WeBSEFF II is complemented by project preparation support and investment incentives funded by the European Union (EU) through the Western Balkans Investment Framework (WBIF). The program was designed and implemented in close partnership with the Energy Community Secretariat.
The EBRD is a leading institutional investor in Serbia. The Bank has invested EUR 4.7 billion across some 200 projects in the country to date. In 2017 alone the Bank provided over EUR 380 million to more than 20 projects across various sectors of the Serbian economy.
The credit line is part of the EBRD Green Economy Transition approach. Since 2006, the EBRD has committed over EUR 26 billion to projects supporting the transition of the 38 economies where it currently invests to a greener economy.
Banca Intesa approving loans of up to EUR 2.5 million
Under the EBRD credit line, Banca Intesa is approving loans to all businesses regardless of their size, public utilities, and municipalities, according to a news release from the bank.
The maximum loan amount is EUR 2.5 million for public sector clients and EUR 2 million for other clients. The repayment schedule spans 7 years, while end-users can also get a cash-back grant upon completing the investment.