8 Nov 2019
EUR 93.5 million
Industries and services
|Date of agreement:||25 Aug 2011|
|Amount in EUR:||EUR 60 million|
|NACE sector / loan type:||Loan programme|
|Business area:||Financial institutions and SMEs|
This loan contributes to climate change mitigation: 70%
The 7-year-maturity loan programme totalling EUR 60 million has been provided for on-lending to energy-efficiency projects that deal mainly with the co-generation of electricity and heat as well as projects within the steel, chemical, forestry and cement industries in Russia. At least 70% of the loan programme is to be allocated to improving energy efficiency. Up to 30% may be allocated for projects fulfilling NIB's mandate in the area of strengthening competitiveness.
Gazprombank (Open Joint-stock Company) was founded in 1990 by the world's largest gas producer and exporter, Russian state-owned group Gazprom. It is the country's third largest bank, providing a wide range of banking and investment services to corporate and private clients.
The main intention of the loan programme is to comply with NIB's environmental mandate in terms of improved energy efficiency. At least 70% of the loan programme's amount is expected to be allocated to
Up to 30% of the loan amount may be allocated to fulfil NIB's competitiveness mandate in the form of substantial supplies of technology and equipment or any other form of long-term cooperation with companies based in NIB's member countries. Projects relevant from a regional cross-border cooperation point of view in terms of improved security of supply of energy may also qualify. Onlending may take place both to municipal and corporate counterparts.
Each sub-project will undergo separate mandate-compliance and environmental evaluation, while approvals of fund allocations are subject to NIB's decision.
NIB undertakes the responsibility to perform environmental analysis of projects to be financed on the basis of the information to be provided by Gazprombank.
The loan facility mainly focuses on replacing outdated and inefficient district heating generation plants with gas fired co-generation plants. As more energy is recovered from the same quantity of fuel, the indirect effect will be decreased emissions of greenhouse gases. Other energy efficiency projects achieving at least 30% savings are also eligible under the facility.