The Green for Growth Fund, Southeast Europe (GGF) issued a USD 5 million loan to MuganBank CJSC (MuganBank) to promote energy efficiency (EE) investments in Azerbaijan. The loan will support MuganBank in expanding its lending operations to sustainable energy financing for MSMEs and retail clients. A special focus will be on rural areas where the organization sees a strong potential for investments in greenhouse renovation and equipment replacement in the agricultural sector. The GGF estimates that EE investments financed through sub-loans derived from the new credit facility will yield primary energy savings and emission reductions in the order of 8,700 MWh and 4,200 tons of carbon dioxide per annum, respectively.
“MuganBank sees growing potential for energy savings in Azerbaijan, and is a committed partner to promote energy efficiency as well as CO2 reductions in the country. In addition to the GGF’s investment, the GGF Technical Assistance Facility will support the bank in building up expertise in EE products and raising energy awareness among MuganBank’s client base,” said Christopher Knowles, Chairman of the GGF, Southeast Europe. “We at MuganBank are pleased to receive this first senior EE loan from the GGF. We strongly believe it will lay a firm foundation for our future collaboration in promoting energy efficiency investments in Azerbaijan. The GGF credit facility will enable us to offer EE loans to our MSME and retail customers to support their investments in EE measures. We will also be able to count on capacity-building support to drive our EE lending operations forward, and that tells us that we truly have an ideal partner in the GGF," said Elmir Hasanov, Chairman of the Board of MuganBank OJSC.