MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Considers Lending $23.5m to Russia’s Transcapitalbank for Residential Energy Efficiency

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral institution, is considering financing a senior loan of RUB 750 million (USD 23.5 million) to Transcapitalbank (TCB), a Russia-based banking institution, for on-lending for residential energy-efficiency projects. The loan would be offered under the residential component of EBRD’s Russian Sustainable Energy Efficiency and Carbon Finance Facility (RSECF), which aims to promote sustainable energy, renewable energy and the reduction of greenhouse gas emissions in the Russian Federation.

The loan would be packaged with technical assistance for TCB relating to product design and establishing operational procedures for the energy efficiency loans. Consultants will also provide advisory services to Russian homeowners to assist them with selecting the best available technologies for their energy needs, planning their projects and ensuring that projects comply with appropriate energy efficiency standards and regulations. Kommunalkredit Public Consulting GmbH, an Austrian consulting group that is funded by the Austrian Ministry of Finance, currently provides the technical support for RSECF Residential.

As of 2013, EBRD reported TCB had total assets of USD 3.9 billion. In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

By Adrija Vaiciulionis, Research Associate

About European Bank for Reconstruction and Development (EBRD):
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

About Transcapitalbank (TCB):
Transcapitalbank is a banking institution in Russia that has been providing banking services for individuals and businesses since 1992. The bank’s primary operations are focused on corporate banking, loan financing and the support of small and medium-sized businesses. As of 2013, EBRD reported TCB had total assets of USD 3.9 billion and total equity of USD 460 million.

Sources and Additional Resources:

European Bank for Reconstruction and Development Website, “Transcapitalbank Residential EE Loan,”
http://www.ebrd.com/pages/project/psd/2013/44533.shtml

MicroCapital Article, July 9, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development Loans $80m to Turkey’s Yapi Kredi for SME Energy Efficiency Projects,”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-loans-80m-to-turkeys-yapi-kredi-for-sme-energy-efficiency-projects/

MicroCapital Article, August 23, 2011, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD), German’s Bank im Bistum Essen Co-finance $13m Loan for Russia’s Transcapitalbank,”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-german%E2%80%99s-bank-im-bistum-essen-co-finance-13m-loan-for-russia%E2%80%99s-transcapitalbank/

MicroCapital Article, July 22, 2010, “MICROCAPITAL BRIEF: International Finance Coporation (IFC) and European Bank for Reconstruction and Development (EBRD) Syndicate $164m Debt Financing Package for Russia’s Transcapitalbank,”
https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-and-european-bank-for-reconstruction-and-development-ebrd-syndicate-164m-debt-financing-package-for-russia%E2%80%99s-transcapitalbank/

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

MicroCapital Universe Profile: Transcapitalbank
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Transcapitalbank

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/ .

 

Similar Posts: