Romania SME Sustainable Energy Financing Facility (RoSEFF)

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Translated version of this PSD: Romanian The EBRD is considering a framework operation of EUR 60 million, under which the Bank provides funding to commercial banks and leasing companies in Romania for on-lending to private sector SME borrowers for energy efficiency and renewable energy investments. Under this program, the EBRD committed on 26 September 2011 the first Sub-Project for BCR for an amount of EUR 20 million. The Project generates transition impact by demonstrating the effects of rational energy utilisation for improving SME competitiveness in the light of the rising energy costs. The Facility will also raise awareness and buy-in of enterprises to the objectives promoted by EBRD under the Sustainable Energy Initiative (specifically SEI2) and by the Romanian Government under the Energy Strategy 2007-2020 with respect to the efficient use of energy resources. Crucially, in the post-crisis recovery environment, the Project will provide much needed medium term funding to Romanian financial institutions for on-lending to SMEs to finance energy efficiency investments. The Project will help develop and demonstrate efficient and effective financing mechanisms for energy efficiency projects through new business models, including leasing, designed specifically to overcome aspects of energy efficiency projects considered risky and to reduce transaction costs. Finally, the Project will transfer and build expertise, among financial institutions, project sponsors and local advisory companies, related to the technical and financial assessment of energy efficiency and renewable energy investments. Clients of the facility will be commercial banks and/or leasing companies in Romania. Clients are selected from Romanian financial institutions with the institutional capacity and commitment to successfully expand a business line in SME sustainable energy investments. The first client under this project was Banca Comerciala Romana (BCR), a subsidiary of Estre Group, Austria and the leading commercial bank in Romania. EUR 60 million in senior loans, of which BCR was of EUR 20 million. EUR 60 million, of which BCR was of EUR 20 million. Categorised FI. This Project offers significant environmental opportunities as it will contribute to the reduction of greenhouse gases. All participating financial institutions are required to comply with the requirements of EBRD’s Performance Requirement 2 (“PR”) on Labour and Working Conditions. All sub-loans under the credit lines will need to comply with the requirements of PR9. Sub-borrowers financed through the credit lines will be required to comply with national requirements for environment, health and safety and labour standards. Reporting on sub-projects and annual environmental and social reports will be provided by the participating financial institutions. The independent Project Consultant will be employed to review proposals and confirm compliance with national Environmental, Health and Safety Legislation requirements. The Facility is supported by a by a Grant provided by the EU which will cover: i) Incentives to sub-borrowers; ii) Technical assistance programme to provide implementation support to participating financial institutions and sub-borrowers. The TC component is essential to the Project and will ensure that eligible sub-projects are pursued and satisfactorily completed and, only in such case, that incentives are disbursed. a. The Project Consultant (PC) will assist with the design, launch and successful operation of the Facility. It will be responsible to market the Facility, provide overall coordination, and assistance in developing energy efficiency and renewable energy sub-projects by supporting potential sub-borrowers in identifying their investment requirements. b. The Verification Consultant (VC) will ensure that the objectives of the Facility are met by checking and confirming, on a sample basis, that sub-projects have been completed in accordance with the relevant investment plans and are on track to achieve the planned energy savings. For EBRD: Karina Saroukhanian E-mail: saroukhk@ebrd.com For BCR: Mrs. Loredana Rautu Head of Financing Programs Department Public and Infrastructure Financing Division Tel. +40 37 351 6501 E-mail: loredana.rautu@bcr.ro