The European Bank for Reconstruction and Development (EBRD) is providing a new EUR10m loan to OTP Bank Romania to finance sustainable energy projects undertaken by local businesses to support private industrial companies in Romania in their drive to improve energy efficiency.

The credit line, extended under the EU/EBRD Energy Efficiency Financing Facility framework, will be used to finance energy efficiency investments by Romanian companies with long-term loans worth up to EUR2.5m each to maximize energy savings.

The EBRD finance will be complemented by grant funding from the European Union to support a technical assistance program and targeted incentive payments for sub-borrowers to promote sustainable energy investments.

EBRD director of Romania Claudia Pendred said that the project will have a positive impact on the climate change mitigation efforts in Romania.

"The project will provide access to long-term financing for the local industrial sector and encourage further sustainable energy improvements in private companies that will make them more competitive and help them mitigate the impact of rising energy prices," Pendred said.