The funds will enable HSBC Bank Armenia to lend firms that wish to invest in their equipment, machinery or other assets intended at achieving the entire energy efficiency and reductions of more than 20% of their energy usage.
Firms can also borrow money to make investments in renewable energy and the maximum term of the loans is five years.
It is part of the EBRD’s Caucasus Energy Efficiency Programme (CEEP), which has been designed to encourage companies make better use of their nation’s energy resources.
The projects that are eligible under CEEP could receive investment incentives of about 15% of the eligible loan amount.
The EBRD said the initiative intends to help Armenia reduce the energy intensity of its economy and promote energy efficiency investments in several sectors.
The bank has invested more than €688m in 129 projects in Armenia’s financial, corporate, energy and infrastructure sectors.
