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Azerbaijan : AZERBAIJANI DEMIRBANK secures a loan of $5m from EBRD for energy efficiency projects

June 5, 2014

The European Bank of Reconstruction and Development (EBRD) has decided to offer a loan of $5 million to the Azerbaijani DemirBank to back energy efficiency projects.

The EBRD has revealed that the bank s Board of Directors is likely to clear the loan proposal on 25th of this month.

DemirBank will use the new funds to support energy efficiency projects to be undertaken by individuals and legal establishments in the country.

"The project will contribute to strengthening the customer base of Demirbank and allow the bank to continue to compete successfully in the local market by providing customers with new products and medium-and long-term financing," stated a report.

The loan forms a component of the EBRD "Caucasus Energy Efficiency Program" (CEEP) on the energy efficiency in the Caucasus region. The bank had launched this scheme in July 2007.

In an earlier statement, the Head of EBRD's Baku Office - Neal McCain has revealed that Demirbank is the first among the three Azerbaijani banks with prospects of getting such allocation.

The EBRD official added, "All of these measures are part of the new strategy of EBRD in Azerbaijan approved in late April."

The EBRD holds stake in the three Azerbaijani banks of DemirBank, AccessBank and UniBank.

In March 2013, the EBRD formalized its maiden energy efficiency loan with AccessBank of Azerbaijan "within the framework of the energy efficiency program in the Caucasus region. The renovation of the bank's 9,840 sq mt headquarters will be supported with a $4.2 million loan. The EBRD loan will support 30% of the project expenditure, while the bank will bear the rest of the project cost.

The EBRD has delivered funds of around EUR1.8 billion to Azerbaijan since 1991, around 50% of which has been meant for the private sector. Consequently, the lender has helped the country in the development of 146 projects.

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Source: TendersInfo (India)

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