Crédit Agricole Serbie signs a loan agreement with KfW
Crédit Agricole Serbia has signed a €25 million loan agreement with KfW, the German Development Bank, to finance energy efficiency and renewable energy projects guaranteed to reduce energy consumption or CO2 emissions by at least 20%. Eligible customers include small businesses, cooperatives, registered farms and legal entities with up to 250 employees and annual sales of up to €50 million.Loans will be granted for a maximum term of seven years. Individual loans are capped at €1 million for energy efficiency projects and €3 million for renewable energy projects.
For an energy efficiency or renewable energy project to be eligible for KfW funding, the customer must apply before making the investment.
Where the investment involves replacing existing equipment with more energy-efficient equipment, the customer must provide documentation showing that the replacement equipment will reduce CO2 emissions or primary energy consumption by at least 20%.
Examples of eligible energy efficiency investments include new machinery (tractors, combine harvesters, etc.), equipment (biomass boilers, biomass dryers, solar panels, incubator stations, etc.) and vehicles for business use (vans, trucks, buses and other commercial vehicles).
Where the investment is in renewable energy projects (biogas and solar power plants) or other energy efficiency initiatives (such as insulating buildings, replacing lighting systems, reconstructing heating systems, etc.), the customer must submit a business plan to the bank that will be used to assess the reduction in energy consumption. Once the investment has been made, KfW consultants assess the project to confirm that it has been implemented in accordance with the stipulated terms, after which the customer receives the agreed grant.