HSBCbank Armenia

completed

HSBC Bank Armenia is subsidiary of HSBC Group. The bank was established in Armenia in 1996, originally under the name Midland Armenia Bank and has been renamed into HSBC Bank Armenia in 1999. The bank is one of the leading banks in Armenia, offering a wide range of products and services to individual as well as corporate customers in Armenia and abroad.The IFC will provide a financial facility to HSBC Bank Armenia (the “Bank”) to finance projects for investment in renewable energy (RE) and energy efficiency (EE) technologies (RE/EE) in Armenia. IFC is considering supporting the project with financing from the Canada Climate Change Program, a donor-funded facility for climate change friendly projects. IFC shall also provide advisory services to the Bank for technical training of credit officers and risk specialists, as well as training and transaction support for the sustainable energy finance projects.The facility will be used for financing investments in projects that will result in increase of energy efficiency or generation of renewable energy in Armenia. The project builds on IFC’s first renewable energy finance loan in Armenia to finance small hydropower plants, complemented by advisory services. In Armenia, RE producers are supported by favorable legislation, a guaranteed feed-in tariff and 15 year power purchase agreement. Survey of 100 Armenian enterprises undertaken by IFC’s Energy Efficiency Survey Project in 2008 found, that there is significant potential for EE financing and the industry could be saving up to 14.5% of energy costs by further improving energy efficiency. The proposed facility would support the Bank in expanding the volume of financing for EE and RE projects.