Belgazprombank will raise a USD 13 million facility under the EBRD’s Belarus Sustainable Energy Finance Facility (BelSEFF).
The respective Loan Agreement was signed today in Minsk by Henry Russell, EBRD’s Director, Financial Institutions, for the Balkans, Belarus, Moldova and Ukraine and Sergey Shaban, Deputy Chairman of the Board, Belgazprombank.
The Loan Agreement with EBRD is one of the measures to facilitate Belgazprombank‘s development as a national Energy bank. It creates the conditions for building-up a strategic relationship with the gas and energy industries in Belarus. A blueprint for interaction between Belgazprombank and these industries was approved in March 2012 by the bank’s shareholders.
“The financing of energy efficiency projects is an attractive business for Belgazprombank, said Sergey Shaban, Deputy Chairman of the Board, Belgazprombank. The primary reason is that the role of sustainable energy in the world is increasing year by year. In the current environment, companies understand that sustainable energy goes hand in hand with innovation and new technologies and that this constitutes the engine of a company’s competitive development as well as providing a balanced model for the social and economic development of the country in general. These trends, which are also applicable to the Republic of Belarus, lead to an increase in the number of realized energy efficiency projects as well as in demand for the funding of such projects. At the same time investments into energy efficiency projects should not be limited only to the financial aspect. The technical competence of the bank’s officers in energy efficiency and the clients’ own desire to develop in this promising direction also play an important role.
The Loan provided under the BelSEFF Programme will be used by Belgazprombank to finance energy efficiency projects involving industrial companies and to develop renewable energy sources and energy-efficiency technologies. A new “Sustainability Effect financing programme was launched by Belgazprombank within the framework of the BelSEFF project. Its key advantages include providing long maturities and attractive rates for the financing of projects, as well as consultancy services given by experienced experts regarding energy efficiency issues in equipment and technology. The technological solutions it offers foster the achievement of a minimum of 20 per cent in energy savings.
This is the seventh credit line extended by EBRD to Belgazprombank. Belgazrpombank has been cooperating with the EBRD since 1996. It is currently one of the major partners of this international financial institution in Belarus. It is working with the EBRD on several levels, including financing of international trade transactions, supporting of micro, small and medium-sized enterprises and, implementing energy efficiency projects. The total amount of credit lines opened by EBRD to Belgazprombank exceeds USD 130 million.
The EBRD’s strategy of project development in Belarus provides for development of private sector including the enhancement of its lending programmes for micro-, small- and medium-sized enterprises and operations directed at the improvement of environmental health.
Belgazprombank established in 1990 is controlled by the Gazprom Group. It holds a leading position in provision of loans to the private sector of the Belarus economy, specifically, small and medium-sized businesses, as well as retail lending.