Armenia’s private sector will obtain new resources for green financing thanks to a $6mn financial package put together by the European Bank for Reconstruction (EBRD) and the Green Climate Fund (GCF). The latter is contributing up to $1.5mn in concessional financing.

The financing is being provided to Inecobank under the EBRD’s Green Economy Financing Facility (GEFF) for lending to local enterprises for investment in climate-change mitigation and adaptation technologies and services. Eligible projects include investments in technologies such as thermal insulation, photovoltaic solar panels, geothermal heat pumps and water-efficient irrigation systems.

The GEFF includes a comprehensive technical advisory package, co-financed by the GCF, which helps to originate and verify green investment opportunities, the EBRD said. “Companies interested in securing a loan for green technologies can also avail of investment incentives funded by the Climate Investment Funds (CIF). Businesses can identify green technologies commonly available in Armenia using the GEFF Technology Selector,” it said.

Dimitri Gvindadze, EBRD head of Armenia, said: “Improving access to green finance is one of our key priorities in Armenia. Inecobank’s solid client base helps to better reach private-sector players both in Yerevan and the regions. We are committed to helping firms and residents reduce their energy consumption and thus become more competitive.”

Inecobank in Armenia offers a full range of banking services to individual customers and small and medium sized enterprises (SMEs). It serves more than 500,000 customers and has more than 250,000 online users. The bank has developed and delivered industry-leading digital banking solutions with a view to introducing an entirely new culture of banking services to Armenia, the EBRD said.

“We are honoured to continue our fruitful collaboration with the EBRD and once again confirm our commitment to the promotion of green financing in Armenia,” said Aren Naltakyan, CEO of Inecobank.

The GEFF programme is helping to build a green economy in Armenia by supporting the expansion of green finance in accordance with the EBRD Green Economy Transition (GET) approach.

The EBRD is a leading institutional investor in Armenia. It has invested more than €1.5bn in 187 projects in the country, supporting private-sector development and the transition to a sustainable, green economy.