Kyrgyz Investment and Credit Bank (KICB) will receive a loan of US$ 5 million, which will then be used for on-lending to companies and households for energy efficiency improvements, such as modernization of equipment or insulation.
Signing the loan agreement during his visit to Bishkek, EBRD First Vice President Phil Bennett said: "We are very committed to energy efficiency and sustainable energy in the Kyrgyz Republic and proud to work with KICB, our long-time partner bank, on reducing energy consumption to improve energy security in the country. The EBRD is already supporting those efforts by channeling financing via local banks, KICB and others. We are also continuing our policy dialogue with the government to open the renewable energy sector to private investors."
The EBRD has been cooperating with the bank, in which it also holds an equity stake, since 2001. One of the latest EBRD projects with KICB was the participation in a pilot corporate bond issue in som in September last year.
Kwang Young Choi, CEO of KICB, said: "This is the second credit facility under the KyrSEFF programme, which demonstrates our commitment to promote energy efficiency initiatives in the Kyrgyz Republic. Being one of the leading banks in the country, KICB aims to promote banking products which are essential for sustainable energy efficiency and result in lower energy consumption, switch to renewable energy resources and reduced energy production and consumption costs".