The EBRD is supporting further the implementation of sustainable energy projects in Romania with a new €10 million loan to Banca Comerciala Romana, for on-lending to private companies seeking to improve their energy efficiency.
The loan is supplementing a similar €20 million credit line offered by the EBRD to BCR in 2008. BCR is the leading bank in Romania, majority-owned by the Austrian Erste Group.
Extended under the EU/EBRD Energy Efficiency Finance Facility framework, the loan will be used to finance energy efficiency investments undertaken by Romanian businesses with long-term loans worth up to €2.5 million each. The project will enable Romanian companies 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.
With the support of the initial loan from the EBRD BCR financed 14 energy efficiency projects, which enabled BCR clients to reduce their energy bills and cut emissions by up to 60% per year and improve their overall productivity.
“Reducing energy intensity is a high priority for the EBRD in Romania, which has a substantial potential for energy efficiency improvements. We are pleased to continue our successful cooperation with BCR by extending new financing for sustainable energy projects”, said Jean-Marc Peterschmitt, EBRD Director for Financial Institutions.
“The successful implementation of the first Energy Efficiency facility was based on strong efforts undertaken by BCR in this respect. It shows BCR’s strategic dedication to a sector which is vital under the current global context. The additional funding by the EBRD is part of a strategic relationship we have with this international financial institution”, said Wolfgang Schoiswohl, Executive Vice-President of BCR.
Since the beginning of its operations in Romania the EBRD has committed over €4.5 billion across close to 270 projects, which attracted additional investment of over €8.3 billion. (press release)