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EBRD Shareholder Special Fund


SMALL BUSINESSES AND BIG ENERGY SAVINGS

August 2012

 

“Caring about energy efficiency is not only something that distinguishes a responsibly thinking person or institution or enterprise; energy efficiency or energy-saving measures are usually interconnected with a strategic investment into the modernisation of an enterprise. And that’s what I like about the EBRD RuSEFF programme: it responds to several concerns at once. Modernisation is preparing the Russian MSME sector on its way to international competitiveness. Thus, a programme that supports energy efficiency or energy-saving measures directly supports the modernisation of the Russian MSME sector. Furthermore, it motivates businesses to invest in responsible and sustainable forms of modernisation,” said Heike Nonnenberg, head of the EBRD’s Russia Small Business Fund during a meeting with Werner Peylo, who is head of the EBRD RuSEFF programme.

RuSEFF stands for Russian Sustainable Energy Financing Facility. Established by the EBRD, this programme aims at improving energy performance and boosting energy savings in Russia’s SME sector. To make this possible, the EBRD uses RuSEFF to provide long-term credit resources to its Russian partner banks for on-lending to small and medium enterprises. These resources are earmarked to be on-lent to enterprises that need long-term loans for investments to decrease the energy consumption of their business, to make their business run more efficiently and to reduce operating costs. The investments can simply entail the purchase of more modern and energy-saving equipment or better insulation of a production building, while other cases might involve fundamental changes to the entire production cycle.

“Russian banks that are partners of the EBRD RuSEFF programme have a significant advantage on Russia’s highly competitive SME lending market. For these banks, the programme provides a new credit product that they can offer to the market and more, it is a long-term loan in roubles. Russian small enterprises currently tend to take short credit lines to finance their long-term investments, because short-term loans – usually disbursed for one or two years – are easier to obtain and banks are more willing to allocate their limited long-term rouble resources to their corporate clients,” explained Ms. Nonnenberg.

But RuSEFF goes even further: “If a client applying for a modernisation loan wishes, the bank can even arrange to have RuSEFF engineers make a site visit to the business and develop a complete and individually prepared energy efficiency and modernisation plan for the enterprise. Using their specialised knowledge of western best practices and expertise, the engineers can calculate the current costs and potential energy savings, help clients to find and purchase appropriate energy efficient equipment, and renovate and insulate production premises,” added Mr. Peylo.

“As the benefit of this co-operation is obvious for banks and clients alike, we are more than ready to promote RuSEFF in our work with the RSBF partner banks,” promised Ms. Nonnenberg. 

For more detailed information please visit rsbf website.