ACBA-Credit Agricole Bank: GREEN-lending is a business financing mechanism ensuring environmental protection

ArmInfo. ACBA-Credit Agricole Bank has demonstrated on its own example the significance of environmental protection by using energy efficiency technologies. The press-service of the bank has told ArmInfo that in a number of the branches innovative technologies have been introduced helping the bank to reduce ongoing expenses.

The bank will continue to implement programs aimed at environmental protection. Thus, within social corporate responsibility projects more than 30 solar energy collectors have been installed in kindergartens and pre-school educational centers in 6 borderline communities, in rehabilitation center in Kosh and Vanadzor branch of "Orran" charitable organization. At the same time the bank's employees jointly with the children of these centers planted around 2000 nursery plants.

Any business to be financed by the bank is studied considering the issues of environmental protection. In cooperation with the Central Bank of Armenia within KfW "Energy Efficiency Program for SME" ACBA- Credit Agricole Bank continues to support investments in energy efficient programs introducing GREEN- lending aimed at cutting business-expenses and raising productivity.

GREEN loans will boost use of alternative sources of power in Armenia and raise efficiency of business processes, which in turn will allow representatives of SME to invest in purchase of energy efficiency mechanisms and equipment and develop infrastructures. In case of necessity energy audit is conducted before providing a loan in order to assess efficiency of future investments.

Additional information about GREEN lending is available on the bank's website: 

https://www.acba.am/hy/business/get-a-loan/energo-saving-loans

To note, in August 2016 ACBA-Credit Agricole Bank within KfW "Energy Efficiency Program for SME" signed a loan agreement with the Central Bank of Armenia aimed at trade and instant lending to SME entities with 11-13.8% annual interest rate and 2-5 years of repayment term. The maximum amount of loan within the agreement is 500 mln AMD.  To recall, "ACBA-Credit Agricole Bank" CJSC has been operating in Armenia since 1995. Since September 2006, the majority shareholders of the Bank have been Credit Agricole S.A. (15.56%) and SJSC "Sacam International" (part of Credit Agricole S.A - 12.44%). Along with them, 10 agricultural cooperative unions hold shares in the capital of ACBA- Credit Agricole Bank. By the coverage of the branch network and the number of regional branches, the Bank holds the second position.  According to the key balance sheet figures, ACBA-Credit  Agricole Bank is in the TOP-5. As of July 1, 2016 the bank is in TOP-10 by the amount of lending to SMEs-33.8 bln AMD or 18% of the total loan portfolio of the bank. In the banks' total lending to SME the ACBA Credit Agricole Bank's share is 6%.