Categories: Finance

EBRD deepens green finance in Armenia

EBRD and Green Climate Fund extend €2.5 million loan to ArmSwissBank for on-lending to small businesses and continues to work with Ameriabank on already existing credit line.

– EBRD and Green Climate Fund are co-financing new GEFF programme in Armenia

– Ameriabank is the first bank in Armenia to receive EBRD energy efficiency credit line

– ArmSwiss Bank receives €2.5 million energy efficiency loan for on-lending to SMEs and business

– Loan will help clients investing in energy efficiency and water efficiency

Intensifying the efforts to strengthen energy efficiency in Armenia the EBRD is launching a new Green Economy Financing Facility for the country, co-financed by the Green Climate Fund (GCF).

Small and medium-sized enterprises (SMEs) and corporates will benefit from a €2.5 million loan to ArmSwiss Bank, the second bank to join GEFF in Armenia after successful start of credit line with Ameriabank. Funding will be available for investments in green technology, especially in climate adaptation and mitigation technologies. Possible investments include technologies such as thermal insulation, photovoltaic solar panels, geothermal heat pumps and water efficient irrigation systems. Businesses can identify typical green technologies available in Armenia through the GEFF Technology Selector.

Companies interested in securing a loan for green technologies may also benefit from investment incentives funded by the Climate Investment Funds (CIF). The GEFF includes a comprehensive technical advisory package, co-financed by the GCF, helping to originate and verify green investment opportunities.

The new GEFF programme in Armenia was launched in Yerevan today during an event which brought together GEFF stakeholders including donors, local state officials, local partner financial institutions, suppliers and producers of green technologies for the residential sector to mark the start of the new programme. The EBRD was represented by its Head of Armenia, Dmitri Gvindadze, who commented: “Developing the financial sector and improving access to green finance is one of our key priorities in Armenia. We are pleased to work with Ameriabank and ArmSwissBank to support both energy efficiency and water resource efficiency investments. Today, we have partnered with the ArmSwissBank which has a strong client base, we can better reach out to private sector players both in Yerevan and in the regions.”

The GEFF programme will contribute towards building a green economy in Armenia by supporting the expansion of green finance in accordance with the EBRD Green Economy Transition (GET) approach.

Since the start of its operations in Armenia in 1992, the EBRD has invested €1.2 billion in 168 projects in the country’s financial, corporate, infrastructure and energy sectors, with 88 per cent of investments in the private sector.