Total Amount of Approved Projects on Crediting of Renewable Power System of `
Cascade Credit’ UMC Exceeded $5 Mln
Arminfo
2007-03-18 01:36:00
The total amount of approved projects on crediting of the renewable
energy of the "Cascade Credit" Universal Mortgage Company (UMC) made
up $5.084,0 thsd. As the press-service of the "Cascade Capital
Holdings" told ArmInfo, as of March 16, 10 projects were submitted to
the Credit Committee of "Cascade Credit" CJSC, 9 of which have been
approved. The sum of the given credits makes up $1.314,6 thsd.
The "Cascade Credit" Mortgage Company, in cooperation with the
Renewable Energy and Energy Saving Fund and the European Bank for
Reconstruction and Development (EBRD), participates in a renewable
energy crediting program in Armenia. Since November, 2006, the Company
has been granting credits for construction and renewal of small energy
objects, of small hydropower plants, in particular. "In 2005, the
World Bank and the EBRD were searching a partner in Armenia that would
be ready to take an active part in the financing of a small energy in
Armenia. The Cafesjian Family Foundation, established by an American
of the Armenian origin Gerard Cafesjian, has become such a
partner. Earlier, he had founded a "Cascade Capital" financial group
and invested $3 mln in a small energy crediting via a "Cascade Credit"
subsidiary. The Renewable Energy and Energy Saving Fund has granted
$5 mln and the EBRD has given $7 mln", the Executive Director of the
"Cascade Credit" Garegin Gevorgian said.
In an undertime, the "Cascade Credit" has succeeded to gather a group
of specialists and develop a product that meets the demands of both
the investors and the potential borrowers. According to G. Gevorgian,
the Company succeeded to agree with the partners and the investors on
unprecedentedly low interest rates, that indicates not only the
attractiveness of the Program for potential borrowers but also the
concentration of the Company’s efforts on a long-term development of
economy and not on the fast profits.
The "Cascade Credit" renders a financing at an annual rate of
LIBOR+7.5% that presently makes up about 13%. The borrowers pay 0.3%
of annual for the approved but not used part of the credit. In case of
giving a credit, the borrowers also pay a nonrecurrent fee at the rate
of 0.6% of the credit sum. "We carry out a flexible mortgaging policy
that is based on a stage-by-stage grow of the mortgaging assurance
volume, as well as a diversity of mortgage kinds. 240,000 drams are
levied for consideration of the credit application", the Exec Director
said.
To note, the "Cascade Credit" UMC is part of the Cascade Capital
Holdings. It also includes the Cascade Bank, the Cascade Bank
Georgia, the "Cascade Equity Managers" Capital Control Company, the
"Cascade Insurance" Insurance Company and the "Cascade Investments"
Investment Company.