GGF and Inecobank sign USD 10 Million energy efficiency loan agreement

  • First loan by GGF to an institution in the European Neighborhood region
  • Loan enables Inecobank to expand energy efficiency (EE) project financing to retail customers and SMEs
  • Minimum primary energy savings of 20%: EE subloans to contribute to lower energy consumption by over 36,000 MWh and CO2 emissions by over 8,200 tons per annum

Luxembourg and Yerevan, 04 October 2012 - The Green for Growth Fund, Southeast Europe (GGF, the Fund) and Inecobank CJSC (Inecobank, the Bank) in Yerevan, Armenia signed a USD 10 million loan agreement to expand the Bank's lending capacity for energy efficiency (EE) projects at the retail and small and medium enterprise (SME) level. The loan is instrumental in supporting Inecobank's strategy to evolve into a green bank. This is the GGF's first energy efficiency loan to a financial institution in the European Neighborhood region (ENR) after the Fund's decision in summer 2012 to expand investment activities into this geographic area of dynamic growth.

The loan is dedicated to financing mainly standard EE measures. Such projects include the installation of energy efficient windows and doors, the upgrading of thermal insulation in walls, of lighting and heating systems in case of retail clients and the upgrading and/or acquisition of EE systems and equipment in case of corporate and SME clients. Inecobank's portfolio of EE subloans to be funded by the GGF's USD 10 million loan is projected to achieve minimum 20% in primary energy savings. This will ultimately translate in annual energy savings exceeding 36,000 MWh and CO2 reductions of over 8,200 tons per year. To illustrate the green benefits: it would take about 82 hectares of additional forest ten years to absorb the 8,200 tons of CO2 generated in one year.*

The loan will be accompanied by comprehensive support - provided by the GGF Technical Assistance Facility - in developing and implementing an EE lending strategy and products complemented by extensive staff training programs.

Inecobank is a universal bank with a strategic focus on the micro, small and medium enterprise (MSME) sector, strongly committed to expanding the EE lending activities. Its excellent customer relations are instrumental in spreading GGF financing to a wide range of loan customers throughout Armenia. With a market share of 4.4 percent as at June 2012, Inecobank ranks 11th in the Armenian banking sector by assets.

"The GGF is delighted to announce this cooperation with Inecobank, a solid financial institution with a strong commitment to energy efficiency lending. This loan agreement also marks the GGF's first step in expanding its activities into the European Neighborhood region. It is by working with sound institutions like Inecobank that we can maximize the Fund's outreach, while effectively contributing towards a reduction of Armenia's energy consumption," said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe.

"We feel confident that our newly established partnership with Green for Growth Fund is a good start for a long-term effective cooperation aimed at promotion of energy efficient lending throughout Armenia. Being a socially responsible organization, Inecobank views this project as a first step towards ensuring reduction of energy consumption not only among local enterprises but also in households via tailor-made banking services." said Avetis Baloyan, Chief Executive Officer of Inecobank CJSC.

* Source:




Initiated in December 2009 by the KfW Entwicklungsbank (The German Development Bank) and the European Investment Bank (EIB) with the financial support of the European Commission and the European Bank for Reconstruction and Development (EBRD), the Green for Growth Fund, Southeast Europe (GGF) is dedicated to enhancing energy efficiency and fostering renewable energies in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo*, Montenegro, Serbia and Turkey as well as in the nearby European Neighborhood region comprised of Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. The GGF provides refinancing to financial institutions for on-lending to enterprises and private households for energy efficiency projects. The GGF also invests directly in specialist energy service companies (ESCOs) as well as energy service and supply companies, and renewable energy projects. The activities of the GGF are supported by a Technical Assistance Facility. The GGF is a public-private partnership with an investor base of donor agencies, international financial institutions and institutional private investors. The GGF is registered under Luxembourg law as a SICAV (variable capital investment company). The GGF 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 a technical advisor, MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany.

* (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)


Founded in 1996, Inecobank is a universal bank with the vision of contributing to Armenia's economic development and improving population welfare. Inecobank CJSC offers the full range of banking products and services to corporate clients, micro, small and medium-sized enterprises, as well as to individual clients. To accomplish its mission, Inecobank works towards improvement of rendered banking services and variety expansion, high quality of customer service, lending and business enhancement, introduction of worldwide accepted and progressive banking technologies, improvement of the image of the Bank, fortification of reliability towards the Bank and competitive position and development. Inecobank was the first bank to propose the project on point of sale lending in Armenia. Inecobank also succeeded in helping its clients to develop their micro and small businesses, reduce their vulnerability, improve their living conditions, pay for basic healthcare and education. Our managers and staff are highly committed to the idea of social responsibility towards society. Inecobank CJSC ranks among the top 11 banks in Armenia, with total assets of EUR 180 million as at June 2012 and an extensive network with 15 branches across the country. Inecobank CJSC's shareholders include IFC and DEG, and reputable international organizations as EBRD and KfW are among the bank's partners.

For more information please visit


Green for Growth Fund, Southeast Europe
Christine Prütz
T: +49 (0) 69 9778 7650-22

Viktoria Ter-Sargisova
T: +374 (10) 510 565

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