GGF AND ACBA LEASING PARTNER TO PROMOTE INVESTMENT IN ENERGY EFFICIENCY IN ARMENIA
- The new USD 2 million senior loan is GGF’s second investment in ACBA Leasing, underscoring both the potential to further increase impact in the country and the GGF’s confidence in ACBA Leasing
- EE investments financed through the GGF loan are expected to yield energy savings of 2,250 MWh and CO2 emission reductions of 370 tons per annum
Luxembourg and Yerevan, 13 January 2015 The Green for Growth Fund, Southeast Europe (GGF) issued a USD 2 million senior loan to ACBA Leasing to promote energy efficiency (EE) investments in Armenia. This is the second GGF loan to ACBA Leasing dedicated to building a strong EE lease financing portfolio.
As an existing partner of the GGF, ACBA Leasing’s business model shows a natural fit with the GGF’s mission to reduce energy consumption while fostering the sustainable development of SMEs in Armenia. ACBA Leasing provides access to finance to a large number of SME clients who want to render their operations more energy-efficient and increase business competitiveness.
The GGF estimates that EE leases financed through its new credit facility will yield primary energy savings and emission reductions of 2,250 MWh and 370 tons of CO2 per annum, respectively.
“ACBA Leasing has consistently proved a strong partner to the GGF in reaching out to a large customer base that seeks alternative financing for EE measures. In addition, the GGF Technical Assistance Facility further supports ACBA Leasing’s commitment to EE finance by providing valuable assistance with energy audits as well as marketing and awareness-raising campaigns. Working together with ACBA Leasing will considerably enhance the impact GGF is able to achieve in Armenia,” said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe.
‘’We trust the newly established cooperation with GGF will continue and that many successful joint projects will result for the benefit of our SME clients in Armenia. The GGF loan will be used to finance energy efficient equipment required by ACBA Leasing’s clients, i.e. small and medium entrepreneurs as well as larger clients, to enhance the EE sector in Armenia. ACBA Leasing has identified potential levers for EE lending business in financing SHPs, thermal solar systems and power efficient ventilators.” said Arsen Bazikyan, General Manager of ACBA Leasing. “In addition, our new ’Green Leasing’ brand addresses the huge potential for financing investments to improve sustainability and energy efficiency."
ABOUT THE GREEN FOR GROWTH FUND, SOUTHEAST EUROPE (GGF)
The Green for Growth Fund, Southeast Europe (GGF) is dedicated to enhancing energy efficiency and fostering the use of renewable energy sources in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo*, Montenegro, Serbia, and Turkey as well as in the nearby European Eastern Neighbourhood region comprised of Armenia, Azerbaijan, Georgia, Moldova and Ukraine. The GGF provides refinancing to financial institutions for on-lending to enterprises and private households seeking to finance energy efficiency projects. The GGF also invests directly in small to medium-scale renewable energy projects. To maximize the impact of the Fund’s investment activities, the GGF’s Technical Assistance Facility offers capacity building support to local financial institutions and partners. The GGF was initiated as a public-private partnership in December 2009 by the KfW Development Bank (KfW) and the European Investment Bank (EIB) with the financial support of the European Commission, the German Federal Ministry for Economic Cooperation and Development (BMZ), and the European Bank for Reconstruction and Development (EBRD). Its growing base of committed investors comprises donor agencies, international financial institutions and institutional private investors, such as the International Finance Corporation (IFC), the Netherlands Development Finance Company (FMO) and the Development Bank of Austria (OeEB). The GGF, registered under Luxembourg law as a SICAV (variable capital investment company), is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg, in concert with the fund advisor, Finance in Motion GmbH, Frankfurt/Main, Germany, and the technical advisor, MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany. For more information: www.ggf.lu
* This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo Declaration of independence.
ABOUT ACBA LEASING
ACBA Leasing Credit Organization CJSC is the first registered and specialized leasing company in the Republic of Armenia. ACBA Leasing was founded on 30 March, 2003, jointly by ACBA-CREDIT AGRICOLE BANK – one of the leading institutions of the Armenian banking sector – and the French CREDIT AGRICOLE Group, acting via its subsidiary CREDIT AGRICOLE LEASING & FACTORING, which is considered the leader of the leasing and factoring market in France. ACBA Leasing began operations on 25 April 2003, when it obtained its N4 License from the Central Bank of the Republic of Armenia.
ACBA Leasing Credit Organization CJSC aims to achieve the following:
- Enable micro, small and medium enterprise segments as well as private households to purchase equipment and production means through medium-term financing,
- Make leasing a mainstream instrument in the financial market of the Republic of Armenia,
- Broaden the manufacturing base of Armenia's economy,
- Support Armenian enterprises in renovating their main resources.
ACBA Leasing works not only with local but also with foreign suppliers, actively driving the development of the Armenian leasing market. The number of cooperation agreements signed with supplier organizations on the international side is growing every year. Today, the company works with more than 120 supplier organizations, which in turn enables ACBA Leasing to expand its customer base. ACBA Leasing also has a broad reach thanks to 260 credit officers operating from the 52 branches of ACBA-CREDIT AGRICOLE BANK. In addition, ACBA Leasing is continuously enhancing its products and services, following through on a sustainable strategy aimed at broadening the current client base and making available our assortment of products to more strata of the public, and in this way fostering a balanced growth for our company.
According to the September 2014 report of Arm Info, ACBA Leasing’s dynamic growth in terms of assets and equity as well as loan volume and income has been ranked the first among the top 7 of the country’s 32 credit organizations. Of the three leasing companies operating in Armenia, ACBA Leasing ranks first with 96 % of the market, followed by Agroleasing (3%) and Unileasing (1%). Pre-tax earnings as at September 2014 amounted to AMD 252 million, with aggregate profits totaling AMD 1.9 billion. Total equity remained constant at approximately AMD 3 billion with assets making up close to AMD 14 billion. The net leasing portfolio consisted of approximately AMD 9.2 billion. Plant and equipment leasing for industrial clients accounts for 33% of ACBA Leasing’s portfolio.
For more information, please visit: http://www.acbaleasing.am/
Media contact GGF
Phone: +49 (0)69/977 876 50-171
Media contact ACBA Leasing
“ACBA Leasing” CO CJSC Consultant
Phone: +374 10 318 888 - 8089