Moscow, Russia, November 11, 2009
—IFC, a member of the World Bank Group, and “BNP Paribas Vostok” Bank signed a memorandum of understanding to develop a sustainable energy finance product focused on financing equipment trade deals in Europe and Central Asia.
The new product will expand access to longer-term finance for companies to upgrade production technology and energy infrastructure and install local power generation capacity, as well as to substantially reduce industries’ carbon emissions.
IFC and BNP Paribas Vostok Bank will jointly promote sustainable energy projects to financial institutions, project developers, and end-user companies. The parties will cooperate to adapt the energy efficiency finance tools developed and pioneered by IFC. The concept will combine traditional approaches in appraising financial risks with assessment of cash flow and other effects associated with the purchase of energy-efficient equipment.
The initiative is led by the IFC’s Russia Sustainable Energy Finance Project and will take place within the context of IFC’s Global Trade Finance Program, which promotes trade flows between emerging markets and increases developing countries’ share of global trade. BNP Paribas is a leading trade finance bank and participates in IFC’s trade finance program as a confirming bank. It expects to source new trade finance business to improve energy efficiency with IFC’s support.
Climate change also is an integral part of IFC’s regional strategy in Europe and Central Asia, and a top priority in Russia. Combining the climate change component with trade enhancing, energy efficiency trade finance offers new opportunities for sustainable development and positive impact.
“This is the beginning of our cooperation with IFC in Russia. I believe it will help strengthen the trade finance business line at BNP Paribas’ retail banking in Russia, as well as enhance our understanding of energy efficiency finance with tools developed by IFC.” said Philippe Delpal, President of BNP Paribas Vostok Bank and CEO of Cetelem in Russia.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis.
For more information about Russia Sustainable Energy Finance Program, visit
www.ifc.org/rsefp
.
About BNP Paribas
BNP Paribas (
www.bnpparibas.com
) is one of the 6 strongest banks in the world according to Standard & Poor's. With a presence in 85 countries and more than 205,000 employees. BNP Paribas is a global-scale European leader in financial services. It holds key positions in its three activities: Retail banking, Investment Solutions and Corporate & Investment Banking.
BNP Paribas Retail Banking in Russia (
www.bnpparibas.ru
; CB “BNP Paribas Vostok” LLC), 100% subsidiary of BNP Paribas Group works in Russia since 2007 and has 26 banking branches in 5 major Russian cities. The bank covers the main areas of financial and banking activity for individuals, small enterprises and corporate clients. CB “BNP Paribas Vostok” LLC works under the license № 2168 from 20 June 2007.
