EDB to lend $10m to Alfa-Bank (Belarus) to finance energy projects

Eurasian Development Bank (EDB) and Alfa-Bank (Belarus) signed a $10 million loan agreement on 28 November. The loan will be used to finance energy conservation projects in Belarus, BelTA learned from the EDB press service.

“In line with the agreement, Eurasian Development Bank will lend $10 million for the period of three years. Alfa-Bank (Belarus) will use the money to issue sub-loans for its customers who meet the EDB-approved criteria. The funds will be spent on implementing projects in resource- and energy conservation,” the press service informed.

According to the EDB specialists, this is the EDB’s first energy conservation project in Belarus. “We believe that besides reducing energy consumption and raising energy- and resource efficiency, the project will have a favorable impact on the financial system, as a new banking product will be offered,” the press service quoted Deputy Chairman of the Management Board of the EDB Dmitry Krasilnikov. The project will also help improve the environmental situation in the country through a broader use of eco-friendly energy sources and, subsequently, by reducing greenhouse gas emissions.

The loan will be used to promote renewable energy sources (solar energy, wind power and hydropower engineering), to reduce the energy intensity of production (the upgrade of heating systems and manufacturing facilities, heat insulation of buildings, energy consumption monitoring), and to enhance the efficiency of using energy sources (renewal of the vehicle pool, purchase of energy-efficient equipment, introduction of energy consumption control systems).

The loan terms provide for the refinancing of the earlier loans issued for energy efficiency projects.

Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital exceeds $1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.

Alfa-Bank (Belarus) was set up as a result of the consolidation of assets of two Belarusian banks. The bank makes part of Alfa Group Consortium, one of the CIS biggest financial and industrial groups. This full-service bank is in the top ten Belarusian banks in terms of assets, loan portfolio, deposits and capital. The authorized capital of the bank is estimated at Br288,503.3 million.