Business
Energy Efficiency
ProCredit Bank Bulgaria offers to its clients business energy efficiency loans. The Industrial Energy Efficiency program of the Bank is implemented with the support of the European Union, Kreditanstalt für Wiederaufbau - KfW (German development bank), whose seat is in Frankfurt (Germany) and Counsil of Europe Development Bank - CEB whose seat is in Paris (France). The consultants on this programme are Grontmij | Carl Bro Group, Bulgarian Consulting Centre and ESDB.
| Loan amount | - minimum loan amount – EUR 10 000; - maximum loan amount – EUR 2 500 000; |
|---|---|
| Currency | BGN, EUR |
| Target groups | legal entities, sole proprietors and freelancers |
| Purpose of loan | - improvement of the energy efficiency of the production process – machines, equipment, technologies, software, etc.; - improvement of the energy efficiency of buildings, used for the needs of the business; - reduction of CO2 and other greenhouse gases emissions. |
| Required effect of the investment | at least 20% energy savings compared to the current energy consumption, with respect to the process to be modernized and/or reduction of greenhouse gas emissions |
| Advantages of the loan | - 15% Investment incentive provided by KfW and CEB; - free energy assessment; - energy cost savings; - positive effect for the business and the environment; - individual lending solutions. |
| Term of the loan | up to 15 years |
| Repayment | Annuity installments, installments with equal principal payments ot flexible repayment schedule |
| Loan application fee | according to the Full Terms and Conditions of ProCredit Bank |
| Collateral valuation fee | according to the Full Terms and Conditions of ProCredit Bank |
| Loan disbursement fee | according to the Full Terms and Conditions of ProCredit Bank |
| Maintenance fee | according to the Full Terms and Conditions of ProCredit Bank |
| Premature repayment fee | no fee for premature repayment with the funds from the Investment incentive |
| Period for loan approval | - for amounts up to 60 000 BGN – up to 3 working days |
| Grace period | up to 6 months |
| Collateral | • Movable property |
Eligible projects:
- improvement of the energy efficiency of the business-related buildings (incl. production, storage, trade, office and other premises) by:
- retrofitting, insulation, replacement of frames, renovation of roofs, etc.;
- installation or replacement of air-conditioning and ventilation systems; - replacement of fuel used – gas or other;
- gas, biomass, coal and other boilers, steam boilers and thermo pumps;
- solar panels and collectors, and using other renewable energy sources – for the needs of the company only;
- co-generation (simultaneous production of other thermal and electric energy);
- acquisition of new machines, equipment, technologies of higher energy efficiency class;
- replacement of machines, equipment, technologies with such of higher energy efficiency class;
- purchase of cars run by natural gas or methane;
- machines, equipment, technologies, reducing the emissions of greenhouse gases;
- other investment, leading to improvement of the energy efficiency characteristics or reduction of the emissions of greenhouse gases.
Non-eligible projects:
- construction of passive or other energy efficient buildings;
- investments in buildings under construction;
- production of energy from renewable sources for sale;
- projects which have been completed or started before the disbursement of the loan.
Loan application, disbursement and project implementation procedures under the Energy Efficiency Program:
- filing a set of documents required for business loan Energy Efficiency application;
- free of charge energy assessment by the Consultant at the place of business of the client;
- financial analysis performed by the Bank;
- disbursement of the financing and implementation of the project;
- filing documents for completed project;
- project verification by the Consultant at the place of business of the client;
- receiving approval for payment of the Investment incentive;
- ProCredit Bank pays the approved Investment incentive to the client upon receiving the first respective tranche from КfW and CEB, disbursed after the project approval;
- the Investment incentive is used for the repayment of part of the loan principal as no fee is charged for this;
- repayment of the rest of the loan as per the repayment schedule provided by the Bank..
Project samples and respective effects
| Purpose of loan | Improvement of the energy efficiency of a building |
|---|---|
| Total loan amount | EUR 250 00 |
| Investment incentive | EUR 37 500 |
| Investments | - frame replacement |
| Effects | 63% reduction of the energy used for heating before project implementation |
| Purpose of loan | Improvement of the energy efficiency of the production process |
|---|---|
| Total loan amount | EUR 1 000 000 |
| Investment incentive | EUR 150 000 |
| Investments | acquisition of a new machine of higher energy efficiency class |
| Effects | 30% reduction of the energy used for the production process before project implementation |
| Purpose of loan | Reduction of emissions of greenhouse gases |
|---|---|
| Total loan amount | EUR 50 00 |
| Investment incentive | EUR 7 500 |
| Investments | purchase of equipment leading to reduction of greenhouse gas emissions |
| Effects | 22% reduction of greenhouse gases and energy consumption before project implementation |
