Categories: Finance

EBRD and GCF support green investments in Armenia: Inecobank to receive US$ 10 million to support local SMEs and corporates

Inecobank to receive US$ 10 million loan under EBRD’s Green Economy Financing Facility. Loan will support SMEs and corporates investing in green technologies. Project is jointly financed by the EBRD and the Green Climate Fund.

Businesses in Armenia will have more opportunities to invest in green technologies thanks to a US$ 10 million (€9.3 million) loan, which the European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) are providing to Inecobank for on-lending to corporates and small and medium-sized enterprises (SMEs) for green investments.

The EBRD will provide US$ 7.5 million (€7.0 million) and the GCF will co-finance with US$ 2.5 million (€2.3 million). The GCF is the world’s largest international climate fund. It was created in 2010 under the United Nations Framework Convention on Climate Change and supports low-emission and climate-resilient programmes in developing countries.

The funds to Inecobank are being provided under the EBRD’s Green Economy Financing Facility (GEFF), a framework designed to support businesses in their green transition journey and in investing in climate-adaptation and mitigation technologies. These technologies also help businesses to enhance their productivity and reduce costs.

The GEFF will contribute towards building a greener economy in Armenia by supporting the expansion of green finance in accordance with the EBRD’s Green Economy Transition (GET) approach. Possible investments include technologies that boost the sustainable use of energy and water resources such as thermal insulation, photovoltaic solar panels, geothermal heat pumps, electric vehicles, electric-vehicle-charging infrastructure and water-efficient irrigation systems. Businesses can identify the green technologies available in Armenia through the GEFF Technology Selector.

Companies interested in securing a loan for green technologies can also avail of investment incentives funded by the Climate Investment Funds.

Inecobank is one of the leading banks in Armenia and a longstanding partner of the EBRD. It is well positioned to reach corporates and SMEs country-wide, including technology suppliers, producers, vendors and installers that could benefit from green technologies.

Since the start of its operations in Armenia in 1992, the EBRD has invested €2 billion in 210 projects in the country’s financial, corporate, infrastructure and energy sectors, with 92 per cent of those investments in the private sector.