OREANDA-NEWS. December 3, 2007. MDM Bank with the support of the International Finance Corporation (IFC) is offering a new specialized loan product for small and medium business called MDM-Energy, the bank's press service reported. This product is intended for businesses that want to modernize equipment and lower energy costs. It is designed to facilitate the introduction of energy-efficient technologies in small and medium businesses in Russia.

The MDM Energy loan product will provide small and medium businesses with targeted bank financing on special terms, as well as expert consultations to identify and evaluate potential projects. Independent technical experts will work with MDM Bank to help estimate the potential for, and impact of, energy conservation at a given business. If required, the consultants may also recommend the most efficient technical solutions or conduct an express energy audit.

Andrei Kuznetsov, Head of the Small Business Lending Department at MDM Bank, notes: “MDM-Energy is indeed a unique product on the Russian market: it enables our clients to not only receive additional financing, but also qualified, independent consulting. We are able to provide such opportunities thanks to our cooperation with IFC.”

Miles Stamp, manager of the IFC Russia Sustainable Energy Finance Program, added: “Russian industry can lower its current level of energy consumption by 37 percent, but doing so will require investments of US$35 billion. We are pleased that the program MDM-Energy will be available in over 60 cities where MDM Bank works. Companies will be able to finance energy-saving projects that not only lower energy consumption and increase competitiveness, but that will also help reduce greenhouse gas emissions. Supporting projects that deter climate change is one of IFC’s strategic priorities.”

MDM-Energy is the tenth credit product MDM Bank offers to small and medium businesses. The cooperation agreement between MDM Bank and IFC for financing energy-saving technologies was signed on 26 July 2007. IFC provided MDM Bank with a credit line of US$20 mln to develop this new area.