16 March 2006. NEFCO (Nordic Environment Finance Corporation) has introduced a credit facility for the financing of energy savings projects in North West Russia and Ukraine. The facility is aimed at social objects approved by NEFCO, such as schools, kindergartens, hospitals etc.
Projects eligible for financing may be i.a. installation of new heating sub-centrals, balancing of heating system, installation of thermostatic valves, installation of heat and water meters, insulation of pipes, insulation of windows and doors or other effective energy saving measures with a payback of up to four years.
The conditions for a credit from NEFCO are the following:
| Lender facility: |
Nordic Environment Finance Corporation, Energy Saving Credit
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| Borrower: |
A Municipality in North West Russia or Ukraine
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| Credit Amount: |
Minimum amount the equivalent in local currency of EUR 100.000, max. the equivalent in local currency of EUR 260.000 for the financing of energy saving measures in schools, kindergartens hospitals or other social objects, up to 90% of the total investment cost. |
Local contribution: |
The Borrowers contribution to the investment shall be no less than 10% of total investment cost. |
| Currency: |
The Credit shall be denominated in local currency (RUB, Hrivna) |
| Interest rate: |
3% p.a. fixed interest for the life of the Credit |
Repayment: The repayment period is calculated on the payback of the project to be financed, including the implementation period, but however not more than 5 years from signing of the Credit Agreement. The Credit shall be repaid in equal quarterly instalments.
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