Banque du Liban
Financing Unit
Environmental Loans: Existing Circular
• Environmentally Friendly projects that aim to preserve the
environment, i.e.:
–
–
–
–
–
–
–
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Green Architecture projects, landscaping, ‫تركيب القرميد‬, ‫تلبيس حجر‬
Renewable energy.
Ecotourism.
Organic Agriculture.
Waste Water Treatment.
Recycling.
Reducing Pollution.
Environmental Loans: Existing Circular
Currency
Interest Rate After
Subsidy
Current
Interest Value
% of RR
Decrease
Term
LBP
≥ Interest on 2Yr.
TBs. – 5.15%
0.19%
200% - Term
Deposits
10 Years
FX
≥ 3 Mths. LIBOR /
EURIBOR + 0.85%
$1.15%
/ €1.74%
200% - Term
Deposits
10 Years
LBP
3%
100% - RR
10 Years
FX
≥ Cost of Funds + 2%
200% - Term
Deposits
10 Years
Subsidized
Environmental Loans
Not Subsidized
Environmental Loans
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MOU Between BDL and UNDP
Objectives:
• Development of technical cooperation in order to develop a
vehicle to finance energy efficiency and renewable energy
projects all over Lebanon. This vehicle is called National
Energy Efficiency and Renewable Energy Account
(NEEREA).
• Cooperation to involve international donors and organizations
to support the NEEREA.
• Development of awareness among Lebanese commercial
banks and end consumers.
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MOU Between BDL and UNDP
Roles and Responsibilities of BDL
• Issuing related circulars for the setup of NEEREA.
• Overall financial management and quality control of the
operations of NEEREA as per BDL procedures.
• Coordination with the Association of Lebanese Banks to deliver
training and capacity building activities.
• Securing the financial stimulus through the exemption from
reserve requirements.
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MOU Between BDL and UNDP
Roles and Responsibilities of UNDP
• Ensure the positive participation of the Ministry of Energy and
Water and the Ministry of Finance in the patronage of NEEREA.
• Cooperation with the Ministry of Finance to ensure the financial
support needed to cover the collateral of the loans portfolio
covered by NEEREA.
• Development of eligibility criteria for potential projects to benefit
from the BDL incentive scheme.
• Ensure the technical validation of projects submitted to BDL
through the Lebanese Center for Energy Conservation (LCEC).
• Certification of the potential projects submitted to BDL by the
LCEC.
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Grant Contract “Facility in Support of
SMEs Energy Saving Investments
• The total amount of the action granted to BDL by the EU is
€/12,200,000/ to encourage the investment of energy saving
measures aiming to reduce at the same time negative environmental
impact .
• If the project is presented within a sector not benefiting from the
subsidy foreseen by Circular 80, a subsidy applicable to a loan
duration of 10 years and equivalent to 15% of the loan requested.
• If the project is presented within a sector benefiting from the
subsidy foreseen by Circular 80, a subsidy applicable to an
extension of the loan duration extended by 3 years and equivalent to
5% of the loan requested.
• In addition, out of this € 12,200,000, a provision of € 200,000 will
be made for technical assistance.
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Environmental Loans: Draft Circular
•
All green and energy saving projects within the Housing, Industrial, Tourism, Agricultural, Health,
Education and Service sectors can benefit from the environmental loans whether they seek
certification or not.
•
Environmental loans will be extended to finance new environmentally friendly projects and to
existing projects as well.
•
Environmental loans that are not subsidized by the Lebanese Government may be repaid over a
period of 10 years.
•
Environmental loans that benefit from Government subsidy over a period of 7 years, would benefit
from additional incentives in Required Reserve exemptions over the remaining 3 years to final
maturity.
•
Environmental loans that are guaranteed by Kafalat SAL, under a new scheme funded by the EU,
with the following conditions:
– Amount of the Loans guaranteed up to $800,000.
– Maturity of the loan is up to 15 years, of which 7 years will be subsidized by the Lebanese
Government, and the remaining period to maturity will benefit from additional incentives
provided by BDL.
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