KYIV. Aug 6 (Interfax-Ukraine) – The European Bank for Reconstruction and Development (EBRD) could issue a credit line of up to EUR75 million to Ukrainian banks under the program of financing energy efficiency projects in the residential sector, at the first phase including OTP Bank and Raiffeisen Bank Aval (both based in Kyiv) in the program.
According to the report, the EBRD board plans to approve the relevant projects on September 2, 2015.
It is expected that the EBRD will provide funds to financial institutions, which, in turn, will lend to end borrowers from the housing sector, including individual homeowners, groups of homeowners, housing construction associations, condominiums and cooperatives. These projects should include investment in high technology, energy efficiency, and measures to reduce energy consumption by at least 20%.
The bank documents said that the funds will be complemented by the mobilized hryvnia resources of Ukrainian banks, participating in the program, in the amount of up to EUR65 million.
In addition, the program foresees a promotional material grant of EUR15 million from the Eastern European Energy Efficiency and Environmental Partnership (E5P) and $25 million from the Clean Technology Fund (CTF), which should provide investment incentives for end borrowers, partial hedging of currency risks and cover losses on loans issued to housing construction associations.
