CABEI and BAC-San José sign US$49 thousand Agreement to finance green projects

In order to promote renewable energy generation and energy efficiency, the Central American Bank for Economic Integration (CABEI)) and BAC-San José signed a technical cooperation agreement amounting to US$49 thousand to partially finance the design of BAC Costa Rica's Green Credit Program.

The technical cooperation is being granted in the framework of the Green MSME Initiative, a joint effort of CABEI, Germany's KfW Development Bank and the European Union through its Latin American Investment Facility (LAIF). Its purpose is to promote environmental investments for MSMEs to undertake energy efficiency and renewable energy projects

The objective of the assistance is to create a green credit product for BAC's MSME customers or other potential customers in order to support investments in energy efficiency and renewable energy. The technical cooperation amounts to US$49,000.00.

The Green MSME Initiative has US$44.5 million in financing for small scale renewable energy and energy efficiency projects. The funds are channeled through CABEI's network of intermediary financial institutions.

The Initiative also has a US$4.5 million technical cooperation program to provide technical assistance to financial institutions, carry out energy audits of MSMEs and develop studies for renewable energy projects, in addition to promoting and raising awareness about green issues.

The agreement was signed by CABEI Country Manager for Costa Rica, Hazel Cepeda Hodgson and BAC San José Manager, Gerardo Corrales.