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More EBRD funds for energy efficiency projects in Romania
New €10 million loan part of wider EU financing facility for Bulgaria and Romania
The EBRD has agreed a €10 million loan to Romania’s BRD Groupe Société Générale for on-lending to private industrial companies in the country to finance energy efficiency projects.
The loan to BRD Groupe Société Générale is part of the EU/EBRD Energy Efficiency Finance Facility which is a wider joint programme of the European Commission and the EBRD to provide up to €100 million in credits to banks involved in lending for energy efficiency projects in Bulgaria and Romania. The loan to BRD Groupe Société Générale is the fourth such loan to a Romanian bank, bringing the total amount invested so far under this facility in Romania to €45 million since its launch in January 2008.
The programme is complemented by €24 million of EU grant funding from the Phare programme*, which will be used for technical assistance to support energy efficiency projects and for other incentives for both the banks and businesses involved. The incentive for the companies receiving loans under this Framework will be 15 percent of the financing under the EU/EBRD programme.
The Romanian authorities have already undertaken several key measures to combat energy wastage in the country. Energy consumption per unit of GDP remains, nevertheless, well above the average for other EU states and Romania has a vast potential to achieve significant energy efficiency gains in a cost-effective manner. By financing investments via the banking system, the facility is designed to stimulate investments in energy efficiency projects by private industrial companies in Romania and should reach a wide range of businesses in the sector.
Jean-Marc Peterschmitt, EBRD Director for Bank Relationships, said that this credit line is an important element of the Bank’s Sustainable Energy Initiative as it will further increase investments in energy efficiency. A large number of clients will be able to benefit from this energy efficiency credit line through the broad branch network of BRD Groupe Société Générale, which will underpin the success of the facility in achieving its targets for improving the energy efficiency and cost-effectiveness of the Romanian economy, he said.
“BRD is already involved in the financing of a number of energy projects in Romania; encouraging energy efficiency is also a part of our group’s commitment towards sustainable development and protection of the environment. We strongly hope that Romanian companies will take the opportunity offered by this loan”, Patrick Gelin, BRD Chairman and CEO, said.
BRD Groupe Société Générale, a subsidiary of Société Générale, is the second largest bank in Romania.
The EBRD is one of the largest investors in Romania. To date, the Bank has invested more than €3.5 billion in 248 projects in Romania and helped mobilize a further €6.5 billion from external sources, resulting in total investments of over €10 billion.
* The Phare programme is the main channel for the EU’s financial and technical cooperation with accession countries. For further information, see: http://europa.eu.int/comm/enlargement.
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