GGF ISSUES EUR 5 MILLION LOAN TO ARMENIAN ACBA-CREDIT AGRICOLE BANK
- The GGF loan will strengthen ACBA-Crédit Agricole Bank's capacity to provide long term financing for energy efficiency (EE) investments and small-scale renewable energy (RE) projects in Armenia.
- The energy efficiency measures to be financed through the GGF facility are projected to result in primary energy savings of more than 23,000 MWh and a reduction of CO2 emissions of 3,800 tons per year.
Luxemburg and Yerevan, 16 december 2013 - The Green for Growth Fund, Southeast Europe (GGF) and ACBA-Crédit Agricole Bank (ACBA-CA Bank, the Bank), Armenia signed a EUR 5 million senior loan agreement. This credit facility is aimed at financing dedicated EE loan products to retail and business clients, predominantly SMEs.
One of the largest banks in Armenia by total assets, ACBA-CA Bank is a market leader in agricultural finance, with excellent market know-how and a strong presence in rural areas. The Bank sees a major business opportunity in expanding into EE finance to meet growing demand for financing in this area. The EE measures to be financed range from improvements to housing envelopes for retail clients to replacing inefficient and outdated machinery and equipment for business clients.
"As ACBA-CA Bank enjoys a strong market position and has an extensive rural outreach, this partnership is an important step forward in promoting energy efficiency savings in Armenia," said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe. "We are very pleased to partner with ACBA-CA Bank to finance and foster investments in sustainable energy efficiency projects."
"We are happy to start our cooperation with the Green for Growth Fund and highly appreciate their mandate in financing energy efficiency and renewable energy projects," said Stepan Gishyan, CEO of ACBA-CA Bank.
"This project will enhance our capacities in targeting and financing sustainable energy projects of our clients"
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 investor base comprises donor agencies, international financial institutions and institutional private investors, and recently added the International Finance Corporation (IFC) and Netherlands Development Finance Company (FMO). 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.
* 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-CREDIT AGRICOLE BANK CJSC
ACBA-CREDIT AGRICOLE BANK is a key player in the Armenian banking system ranked first in terms of capital and 3rd in terms of assets as of 3Q 2013. The Bank's primary strategic focus is on providing financial services to micro, small and medium enterprises (MSMEs) with a particular focus on rural areas. The Company was founded in March 1996. In 2006 Credit Agricole acquired a 28% stake in ACBA's capital thus becoming its largest shareholder. The Bank is owned by Credit Agricole (28%), a number of agricultural cooperatives (totaling 71%) and the bank's management (1%). As of November 2013, ACBA had total assets of USD 657 million and loan portfolio of USD 388 million.
For more information, please visit www.acba.am
Media contact GGF
Phone: +49 (0)69/977 876 50-320
Media contact ACBA-CREDIT AGRICOLE BANK CJSC
Head of Marketing Division
Phone: +374 10 31 88 88