IFC OFFERS $15M LOAN TO AMERIABANK FOR RENEWABLE ENERGY PROJECTS IN ARMENIA

Microfinance Focus
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Dec 24 2009

Add a commentMicrofinance Focus, Dec. 24, 2009: IFC has announced
$15 million senior loand to Ameriabank to finance small-scale
renewable-energy projects in Armenia to boost the supply of renewable
energy and help lower greenhouse-gas emissions.

IFC loan will help the bank to provide long-term financing to build
small hydropower plants. Projects supported by the loan are expected
to reduce carbon dioxide emissions by about 30,000 tons a year. The
financing also will help increase Armenia’s domestic electricity
production, diversify the electricity supply, and decrease the
country’s reliance on fuel imports.

IFC also will provide advisory services to help Ameriabank assess and
review projects, with a focus on environmental and financial aspects.

Earlier this year, IFC provided the bank a $5 million trade-finance
guarantee, allowing it to expand financing for the foreign trade
transactions of its clients throughout the country.

IFC has been investing in Armenia since 2000 to support financial
institutions, small retailers, and the hotel industry, among others.

It also has implemented advisory projects to improve the country’s
business environment and strengthen the financial sector. Addressing
climate change is a strategic priority for IFC and the World Bank
Group. Globally, in fiscal year 2009, IFC invested over $1 billion
in energy efficiency, renewable energy, and other climate-friendly
investments.