The loans under the credit line will support the energy efficiency improvements in households and private enterprises across the country.
EU Central Asia Investment Facility (IFCA) will provide donor funding of around €3.8m that will complement the credits.
Under the new Kyrgyz Sustainable Energy Financing Facility (KyrSEFF), loans will be provided through Demirbank and KICB, over the next four years.
Meanwhile, additional partners will join the initiative over the next few months.
Commenting on the funding, EBRD Central Asia, Caucasus and Mongolia Financial Institutions director Mike Taylor said that working together with the Kyrgyz banks on energy efficiency projects is a high priority for the EBRD.
Kyrgyz Republic EU ambassador Chantal Hebberecht said," We are glad that the government of Kyrgyz Republic and the EBRD are providing us with this opportunity to support residents to improve their homes and businesses in their efforts in upgrading their quality output whilst saving energy."
The credit line for private households, home improvements will be employed in the installation of energy efficient windows, the insulation of walls, roofs and floors, and the introduction of efficient boilers, biomass-fuelled room heaters, solar water systems or heat pumps.
Energy efficient investments in the commercial sector will be used in the purchase of new production machinery, help enhance production processes, or retrofit company buildings and facilities.
