Joint-Stock Company «Commercial Industrial Bank», the United Nations Development Programme (UNDP), and LLC «KYIVESCO» on August 8, 2019 met again to conclude another factoring agreement under the project «Removal of barriers to attract investments in increasing energy efficiency of public buildings in small and medium cities of Ukraine based on the ESCO model».
This step can without exaggeration be considered not only important for the parties of the agreement but also for the entire energy-saving future of the country. Because the program has proven that it is both effective and commercially advantageous. The conclusion by Commercial Industrial Bank of another ESCO-factoring agreement with LLC «KYIVESCO» - is the best testimony to this.
We remind you that it is JSC «CIB» that became the first bank that started cooperation with UNDP on financing ESCO projects. On January 14, 2019, a Memorandum was signed between JSC «CIB» and UNDP. At the same time, the first factoring agreement was concluded with LLC «KYIVESCO» within the framework of this partnership. A small-volume short-term pilot project was an attempt to try out factoring as an instrument of energy service financing. Over the past 6 months, the credit funds attracted, at 85%, ahead of the payment schedule, have already been returned to the bank.
A new agreement – a new scale. Currently, the lending amount has increased 5.5 times. An agreement has been reached on a loan of UAH 15.8 million.
Within the framework of the signed document, the parties implement the project «Removal of barriers to attract investments in increasing energy efficiency of public buildings in small and medium cities of Ukraine based on the ESCO model». The aim of the project is the implementation of European energy consumption standards and the creation of comfortable conditions of stay in public buildings. The parties carry out information-consulting, expert-analytical, other cooperation and coordination of actions for the implementation of joint projects, programs, measures aimed at the development of energy saving, energy efficiency, «green» energy, and the building of necessary infrastructure in these spheres.
The number of energy service agreements financed by Commercial Industrial Bank in the direction of ESCO-factoring is actively growing. Thus, if in the first half-year 22 energy service agreements were financed, then already at the beginning of August six new ones were concluded. And on August 8 their total amount already reached 88! This will allow simultaneously financing about 60 facilities in five cities of Ukraine: Kyiv, Odesa, Slavutych (Kyiv region), Borodianka (Kyiv region), and Drohobych (Lviv region). The facilities — are educational establishments, schools and kindergartens, medical institutions. The specified projects will allow, almost immediately after the start of their implementation, to create comfortable normative conditions of stay in the premises of the establishments. At the same time, this will save local budgets UAH 9.8 million during the operation of the ESCO agreements. And all this – is only the beginning.
