Kyrgyz Investment and Credit Bank (KICB) has secured new lending from the European Bank for Reconstruction and Development (EBRD) to increase financing for energy efficiency projects in the Kyrgyz Republic.

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EBRD will provide $2m loan to KICB, which will use the funds for on-lending to businesses and households that plan to make energy efficiency enhancements.

The loan is being made under Kyrgyz Sustainable Energy Financing Facility framework, which is one of the bank’s range of instruments to finance energy efficiency and small-scale renewable energy projects in the region.

KyrSEFF provides credit lines and technical support to local banks, to allow them for financing small-scale sustainable energy projects.

The European Union’s Investment Facility for Central Asia (IFCA) supports KyrSEFF, which is a $20m facility.

It is part of the EBRD’s Sustainable Energy Financing Facility. KyrSEFF financing includes grants covering from 10% to 35% of the project cost provided by the IFCA.

The EBRD has to date invested more than €510m in 117 projects in the Kyrgyz Republic.

Image: EBRD provides new funds for energy efficiency in Kyrgyz Republic through KICB. Photo: Courtesy of European Bank for Reconstruction and Development.