EBRD - European Bank for Reconstruction and Development - launches 60 million euro energy efficiency facility for small businesses in Romania

The Romanian SME Sustainable Energy Financial Facility (RoSEFF) will help local companies maximize energy savings and improve their overall competitiveness, while contributing to a reduction in the country’s high energy intensity.

Clients of the facility will be commercial banks and/or leasing companies in Romania. Clients are selected from Romanian financial institutions with the institutional capacity and commitment to successfully expand a business line in SME sustainable energy investments.

The EBRD is extending the first loan under RoSEFF, worth €20 million, to “ Banca Comerciala Romana” (BCR), Romania’s largest commercial bank and part of the Austrian Erste Group.

The proceeds of the loan will be used to finance SME investments in improving industrial operations and premises, replacing equipment, software, and general upgrading aimed at reducing final energy consumption or producing renewable energy on a small scale. Individual sub-loans are limited to €1 million and thus the focus is on smaller-scale investments.

Sub-borrowers undertaking energy efficiency investments will be reimbursed by up to 10 to 15 per cent of the sub-loan amount on the successful completion of the works. The size of the reimbursed grant will depend on the technology and the energy savings achieved as a result of the project.

The implementation of RoSEFF is supported by a planned €12.05 million grant financing from the European Union. This funding will be used to support investment projects through technical assistance and reimbursement grants.

More information will be available at the beginning of 2012.