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EBRD and BRD to channel €10 mln to Romanian energy efficiency

The EBRD is continuing to support private industrial companies in Romania in their drive to improve energy efficiency with a new €10 million loan to BRD Groupe Société Générale to finance sustainable energy projects implemented by local businesses.

The loan is supplementing a similar €10 million credit line offered by the EBRD to BRD in 2008.

Extended under the EU/EBRD Energy Efficiency Finance Facility framework, the loan will be used to finance energy efficiency investments undertaken by Romanian companies with long-term loans worth up to €2.5 million each. The project will enable businesses to maximize energy savings, mitigate the impact of rising energy prices and to improve their overall competitiveness.

With the support of grant financing from the EU, sub-borrowers undertaking sustainable energy investments will be eligible for an incentive payment from the EBRD of up to 15% of the amount of their investment upon the completion of the works, subject to applicable conditions.

The proceeds of the initial EBRD loan enabled BRD to finance 11 energy efficiency projects in Romania, which helped BRD clients to reduce their energy bills, cut emissions and raise their overall productivity.

“This project is reinforcing the EBRD’s commitment to promote energy efficiency in the private industrial sector in Romania. We are pleased to continue our successful cooperation with BRD by extending new financing for sustainable energy projects that will facilitate local businesses’ access to funding,” said Claudia Pendred, EBRD director for Romania.

“This second Energy Efficiency project is a very welcome extension of the successful implementation of the first such project signed with the EBRD in May 2008. This is also a clear indication of sustainable efforts made by BRD to support energy saving private clients in Romania, a country that needs modern technologies in order to adapt itself to the exigencies of competition within the European Union”, said Guy Poupet, chairman and chief executive officer at BRD – Groupe Société Générale.

Since the beginning of its operations in Romania the EBRD has committed over €4.8 billion in various sectors of the country’s economy, which attracted additional investment of €9 billion. (BBJ)