GGF PROVIDES ACBA LEASING WITH EUR 1.75 MILLION LOAN FACILITY
- The new loan facility boosts ACBA Leasing's capacity to offer dedicated energy efficiency products to its clients, helping them to reduce their energy costs and enhance their competitiveness.
- The energy efficiency-specific leases financed through the GGF facility are projected to result in energy savings of 10,500 MWh and a 2,100-ton reduction in CO2 emissions annually.
Luxemburg and Yerevan, 06 December 2013 - The Green for Growth Fund, Southeast Europe (GGF) has issued a senior loan facility totaling EUR 1.75 million (EUR 1 million and USD 1 million) to ACBA Leasing Credit Organization CJSC (ACBA Leasing) in Armenia. The new credit line will be used to finance the energy efficiency (EE) investments of existing ACBA Leasing clients as well as to encourage new customers to invest in EE measures.
ACBA Leasing is the market leader in Armenia's leasing sector with a solid customer base comprised of SMEs and individual entrepreneurs wishing to expand their business by investing in fixed assets.
ACBA Leasing, which has identified a strong need for EE investments among its customers, has shown a high commitment to acquire relevant EE expertise and build a strong EE lease portfolio. The loan facility will be complemented by dedicated support - provided by the GGF Technical Assistance Facility - in strengthening the role of green finance in ACBA Leasing's business strategy and in building relevant internal EE capacities.
"ACBA Leasing will be the first Armenian leasing company to offer EE financing," said Christopher Knowles, Chairman of the Green for Growth Fund, Southeast Europe. "This makes them an excellent partner for us in reaching our goal to foster sustainable energy savings in Armenia."
Mr. Arsen Bazikyan, Deputy General Manager of ACBA Leasing, added: "We hope that the newly established cooperation with GGF will be long-lasting and that many successful joint projects will follow for the benefit of our SME clients in Armenia".
The GGF loan will be used to finance energy efficient equipment to be purchased by ACBA Leasing's customers, i.e. small and medium entrepreneurs as well as larger clients in order to strengthen the EE sector in Armenia. ACBA Leasing has identified large potential for EE lending business in financing small hydropower plants, thermal solar systems and power efficient ventilators.
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 LEASING CREDIT ORGANIZATION CJSC
ACBA Leasing Credit Organization CJSC is the first registered specialised leasing company in the Republic of Armenia. ACBA Leasing was founded on 30 March, 2003, jointly by one of the leading institutions of the Armenian banking sector, ACBA-CREDIT AGRICOLE BANK, and the French CREDIT AGRICOLE Group, acting via its subsidiary CREDIT AGRICOLE LEASING & FACTORING, 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's activities aim to achieve the following:
- Enable micro, small and medium enterprise segments as well as private households to purchase equipment and means of production 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,
- Contribute to RA 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 the cooperation agreements signed with supplier organisations is growing every year on the international side. Today, the company works with more than 120 supplier-organizations who in turn provide us with more customers. ACBA Leasing also has a broad reach thanks to its 260 credit officers operating from 44 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 December 2012 report of Arm Info, ACBA Leasing's dynamic growth in terms of assets and equity as well as loan volume and income has earned it a place among the top 5 of the country's 32 credit organisations. Of the three leasing credit organisations operating in Armenia, ACBA Leasing ranks first with 96% of the market, followed by Agroleasing (3%) and Unileasing (1%). Pre-tax earnings as at October 2013 amounted to AMD 110 million, with aggregate profits totalling AMD 1.8 billion. Total equity remained constant at approximately AMD 3 billion with assets making up close to AMD 11 billion. The net leasing portfolio consisted of approximately AMD 8.4 billion. Plant and equipment leasing for industrial clients accounts for 33% of ACBA Leasing portfolio.
For more information, please visit www.acbaleasing.am.
Media contact GGF
Phone: +49 (0)69/977 876 50-320
Media contact ACBA Leasing
"ACBA Leasing" CO CJSC, Consultant
Phone: +374 10 563 945 and +374 10 318 888 - 8089