InfoBank.by: Alfa Bank and EDB finance energy efficiency projects for a total of US $10 million
Alfa Bank (Belarus) completed to disburse a US $10 million targeted loan facility provided by Eurasian Development Bank (EDB) under the energy efficiency programme of Belarus, the media service of Alfa Bank reported to BELTA.
Belarusian electric power, food, metal processing, agricultural and transport enterprises received investment to upgrade energy and resource consumption at their production facilities.
"Large, small and medium-sized businesses got access to loans under the energy efficiency programme. Industrial enterprises received about US $5 million from the loan facility, agricultural enterprises US $4 million and transport companies US $1 million," Konstantin Zhabko, Head of the Bank's Department for Relations with Financial Institutions, explained. He also said that competition among borrowers was rather tough. "We plan to expand cooperation with Eurasian Development Bank and discuss new joint projects," he added.
In addition to financing the investment projects of its clients with the EDB loan facility, Alfa Bank offered comprehensive support for equipment procurement transactions. Most projects were fulfilled with the use of documentary letters of credit as a form of settlement. Approximately 50% of equipment supplies to Belarus were from the CIS countries, 45% from European countries (the U.K., Austria, Spain and Germany), and the remaining portion of supplies from China.EDB evaluated this pilot project with Alfa Bank (Belarus). "Alfa Bank (Belarus) has successfully fulfilled the first project with EDB to improve energy efficiency in Belarus. This project is an example of comprehensive business solutions aimed at advancing the financial sector of Belarus and promoting improvements in the country's environmental situation," Dmitry Krasilnikov, Deputy Chairman of the Management Board at Eurasian Development Bank, said.
Alfa Bank (Belarus) signed an agreement with EDB on the provision of a three-year targeted loan facility for a total of US $10 million to finance energy efficiency projects of its corporate clients in November 2014. This was EDB's first provision of targeted funds under the energy efficiency programme of Belarus.