11.01.2015, 13:04

KICB and EBRD signed signed agreement for $ 2 mln under the KyrSEFF

Bishkek, January 10 Kabar/. The Kyrgyz Investment and Credit Bank (KICB) and the European Bank for Reconstruction and Development (EBRD) signed agreement for 2 million US dollars under the Kyrgyzstan Sustainable Energy Financing Facility (KyrSEFF). This is the third credit line issued by KICB to provide loans to improve energy efficiency.

In 2013 KICB received 1st KyrSEFF credit line funds in the amount of USD 3 million, part of which was provided in a local currency equivalent. This credit line was successfully utilized during 2013. Following its success and thanks to strong demand from the borrowers, KICB applied to EBRD to obtain new facility under the KyrSEFF. So in 2014, has been given a second credit line in the amount of US $5 million, which was also successfully launched.

Introduced in 2011 KICB loan product “Warm House”, which became very popular among bank customers was supplemented by the “Warm House +” and “Energy Saver” products developed based on the KyrSEFF facility. “Warm House +” and “Energy Saver” products provide subsidized credit for financing energy efficiency projects for private households and for residential and commercial buildings. The clients of KICB, implementing projects in accordance with the terms of the program, have the possibility on obtaining the grant from 10% to 20% of the loan amount, as well as obtaining free-of-charge technical assistance as consultations with the international and local engineers of the KyrSEFF team.

As Mr. Kwang Young Choi, CEO of KICB said: “Thethird credit facility under the KyrSEFF programme, which demonstrates commitment of KICB to promote energy efficiency initiatives in Kyrgyzstan. Being one of the leading banks in the Kyrgyz Republic, KICB aims to promote banking products essential for sustainable energy efficiency resulting in lower energy consumption, switching to renewable energy resources and reduced energy production and consumption cost”.

The agreement for 2 million US dollars with EBRD will enable KICB to continue implementation of the programme on providing loans and grants to the Customers of KICB for improvements of energy efficiency of buildings, commercial property and energy infrastructure.

Reference:

CJSC "Kyrgyz Investment and Credit Bank” (KICB) was established in 2001 and became the largest commercial bank in Kyrgyzstan with the startup authorized capital – USD 7 million. The Bank has a network of 16 branches and 22 offices across the country, providing a full range of banking services. The shareholders of the bank are the Kyrgyz Republic (10%) and the world-renowned financial institutions (90%). The international shareholders include the Aga-Khan Fund for Economic Development (AKFED) - 21%, the Habib Bank Limited (HBL) -18%, the German Development Bank (DEG) -17%, the European Bank for Reconstruction and Development (EBRD) -17% and the International Finance Corporation (IFC) - a member of the World Bank Group - 17%.

European Bank for Reconstruction and Development (EBRD) is an international commercial organization, the major role of which is to provide assistance to the countries of Central and Eastern Europe and Commonwealth of Independent States in building market economy.