The European Bank for Reconstruction and Development (EBRD) is lending $ 3 million to Muganbank to finance energy efficiency projects in the country, a statement says.
The facility is provided for on-lending to qualifying corporate and individual customers, and will be used for energy efficiency and renewable energy projects.
Muganbank became the third partner of the EBRD in Azerbaijan in this area. EBRD signed the first loan for energy efficiency with AccessBank in the amount of $ 4.2 million in March 2013 and with DemirBank in the amount of $5 million in September 2014.
“The EBRD has been working with Muganbank since 2006 to support financing of the real sector of the economy,” EBRD’s Head of Office in Baku, Neil McKain, said. “This credit facility is a new product for Muganbank, as well as for the market in general and therefore will mark a new phase in our longstanding relationship. We are delighted to support Muganbank further with this credit facility that will help us reach diverse sectors and customers.”
The EBRD has engaged consultants to provide financial institutions, firms and households with technical advice for energy efficiency investments. This support enables industrial clients and homeowners to make the transition from substandard equipment and materials towards more energy efficient and better performing facilities, which will deliver greater results over their lifetime.
The loan will be supported by grant funding from the European Union Neighbourhood Investment Facility, the EBRD Shareholder Special Fund and the Austrian Federal Ministry of Finance. The grants will be used for technical assistance and investment incentives for households.
The EBRD has been active in Azerbaijan since the country’s independence. To date the Bank has invested in 146 projects with over $ 2.5 billion across various sectors of the Azerbaijani economy. One of the EBRD’s priorities in the country is to support the growth of the non-oil private sector by investing in dynamic small and medium-sized enterprises.
