OREANDA-NEWS. September 16, 2009. In cooperation with Kredex, SEB has issued 15 renovation loans with discounted interest rates which are designed to improve the energy efficiency of apartment buildings, reported the press-centre of SEB.

“Investing in energy-efficient projects is widespread in developed European countries,” explained Riho Unt, a member of the management board of SEB and head of the Retail Banking and Technology Area. “State institutions encourage people to make energy-efficient decisions by offering them support measures. Where Kredex is concerned that measure is longer repayment terms and more affordable prices. For us here at the bank, investing in energy efficiency is a smart move because the amount you save is more than what you have to repay on the loan.” The first energy-efficient renovation loans were issued in June this year, with the average loan being valued at 1 million kroons. The average cost of the projects being financed is 1.4 million kroons.

“Depending on the size of the building, the average saving people are looking to make on energy costs through the renovations is 33%,” said Unt. One of the conditions on the loans was that the minimum saving on buildings of up to 2000 m2 had to be least 20%, and 30% for buildings bigger than 2000 m2. Most of the buildings are having their insulation redone on the exterior walls and their doors and windows replaced. The heating systems are being renovated, too.”

Apartment associations who started renovating before the Kredex loans became available can also make the most of the loans and their discounted interest rates. Energy efficiency achieved through renovations which commenced prior to 1 January 2008 are now included among the energy savings looking to be achieved and the cost involved in them is viewed as self-financing by the apartment associations. “That way an association that renovated the roof of their building in 2008 and was already making savings on their heating bills in winter can now use the discounted loan to do the exterior of their building up as well, or anything else that needs doing in order to make their buildings even more energy-efficient,” Unt explained.

Apartment associations can apply for renovation loans with discounted interest rates from any branch of SEB. Applications must be accompanied by an energy audit as well as the details of the renovation project if the energy audit was conducted after 7 May 2009.