Raiffeisenbank and the Nordic Environment Finance Corporation (NEFCO) have signed a framework agreement to provide loans to Russian municipalities to perform energy saving measures. Under the agreement, Raiffeisenbank will be the intermediary bank for NEFCO in Russia, financing energy efficiency projects in Russian cities under the «Eco-efficiency» programmes.
The main objective of the NEFCO «Eco-efficiency» programme is to promote emissions reduction by reducing energy consumption, and above all to reduce the emissions of carbon dioxide, nitrogen oxides and sulphur oxides, and volatile organic compounds (VOCs).
The program is aimed at financing small projects primarily related to energy efficiency in municipal buildings such as schools, day care centres, hospitals and sports facilities. The projects may include the conversion of heating units, the installation of thermostatic controls in conjunction with the insulation of windows and doors, the replacement of mercury-containing light bulbs with economical lighting.
The funds are available exclusively to municipalities or municipal enterprises in Russia and Ukraine. Under the terms of this loan programme NEFCO can provide up to 90% of the investment cost of any project. In Russia, the maximum loan granted under this programme is RUR 9.5 million. The loan payments schedule directly takes into account the return on investment, and the maximum loan repayment period is 5 years.
NEFCO has provided more than EUR 60 million and supported some 200 projects, more than 50 of which involved the implementation of energy saving measures in the Russian municipalities.
The framework agreement between NEFCO and Raiffeisenbank does not prevent any other organization from participating in similar projects and neither does it prevent other financial institutions from offering their services to NEFCO.
ZAO Raiffeisenbank is a subsidiary of Raiffeisen Bank International AG. Raiffeisenbank ranks 9th among the Russian banks in terms of assets, based on H1 2011 results (Interfax-CEA). According to the same Interfax-CEA data, ZAO Raiffeisenbank ranked 5th in terms of private deposits and 7th with regard to consumer lending.
Raiffeisen Bank International AG regards both Austria, where it is a leading corporate and investment bank, and Central and Eastern Europe (CEE) as its home market. In CEE, RBI operates an extensive network of subsidiary banks, leasing companies and a range of other specialised financial service providers in 17 markets. Around 60,000 employees service about 14 million customers through around 3,000 business outlets, the great majority of which are located in CEE. RBI is the only Austrian bank with a presence in both the world’s financial centres and in Asia, the group’s further geographical area of focus. Raiffeisen Bank International is a fully-consolidated subsidiary of Raiffeisen Zentralbank Oesterreich AG (RZB). RZB indirectly owns around 78.5 per cent of the common stock, which is listed on the Vienna Stock Exchange; the remainder is in free float. RZB is the central institution of the Austrian Raiffeisen Banking Group, the country’s largest banking group, and serves as the group head office of the entire RZB Group, including RBI.