OREANDA-NEWS. April 09, 2012. In partnership with the EBRD, Center-invest Bank has launched a new loan programme to promote the sustainable development of SMEs in southern Russia: loans with a term of up to seven years for energy modernization projects, reported the press-centre of Center-Invest Bank.

In 2005 Center-invest Bank became the first bank in Russia to provide loans for energy efficiency projects. The bank has since been involved in financing almost 850 energy efficiency projects, with total lending amounting to RUR4.3bn.The implementation of these projects has reducedannual CO2 emissions by 90,000 tonnes. This month, Center-invest Bank and the EBRD launched a new loan programme for SMEs in southern Russia to carry out energy modernization projects. Under this programme, Center-invest Bank will provide ruble loans with a term of one to seven years.

A special feature of the new loan product is that it includes free technical support and a free energy assessment of the borrower’s company, both of which are provided by the RUSEFF programme. Leading Russian and European engineers, economists, and financial and technical experts are involved in this work.Drawing on the experience of past projects, they are helping borrowers to find the best solutions when it comes to choosing equipment and equipment suppliers.

The RUSEFF programme has developed an Equipment Selector for SMEs. This is an innovative, independent portal for energy efficiency equipment in Russia, where the customers can select the equipment they require and then apply straightaway for a loan from Center-invest Bank.

"Each per cent of costs saved become a per cent of profits,” says head of the RUSEFF programme, Verner Peylo. “The savings from the implementation of an energy efficiency project are significantly higher than the costs of servicing the loan, and the project is, essentially, self-financing.”