Belagroprombank develops cooperation with Nordic Environment Finance Corporation (NEFCO)
NEFCO and the Belarusian JSC Belagroprombank have today signed a Memorandum of Understanding aimed at strengthening the cooperation between the two financial institutions and enhancing the implementation of a range of environmental projects in Belarus.
(From left to right): Chairman of the Board of JSC Belagroprombank Anatoli Lysiuk and Senior Financial Manager at Nordic Environment Finance Corporation Thor Thorsteinsson
In particular, the agreement aims at setting up a credit line related to investments in the agricultural sector that will benefit the ecological state of the Baltic Sea. The western part of Belarus belongs to the catchment area of the Baltic Sea and therefore agricultural activities in the country contribute to the discharges of nutrients fuelling eutrophication in the Baltic Sea. By improving manure treatment and producing biogas in conjunction with animal farms, these nutrient flows can be largely reduced. The upcoming investments can also facilitate energy efficiency measures at the farms concerned.
Funding provided by NEFCO will become an additional source of long-term financing of investment projects in the country on more favorable terms compared to the cost of funds on the domestic market.
JSC Belagroprombank is the largest and the only state-owned partner bank for NEFCO in Belarus.
JSC Belagroprombank invites for cooperation the companies interested in the implementation of investment projects aimed at environmental impact and energy efficiency issues.
Nordic Environment Finance Corporation (NEFCO) – international financial institution, founded in 1990 by five North European countries: Denmark, Iceland, Norway, Finland and Sweden. NEFCO provides loans and investment capital with the aim of improving the environment of the Northern region, provides financing for environmental projects in different areas, including the use of renewable energy sources, in the Central and Eastern Europe countries, such as Russia, Belarus and Ukraine. The corporation's activity is focused on economically viable projects that provide regional environmental benefits. The Corporation's portfolio contains about 400 small and medium-sized projects in various areas. In 2015, NEFCO’s Board of Directors approved six projects for Belarus. The bulk of these investments relate to energy efficiency improvements in the private sector.
In January 2015, NEFCO and the Belarusian government signed a framework agreement that entered into force in August the same year. NEFCO’s upgraded legal status in Belarus has paved the way for a substantial increase of the corporation’s lending operations in the country.
NEFCO and JSC Belagroprombank have previously joined forces in connection to a financing arrangement aimed at modernizing meat production in Belarus. In June 2016, NEFCO and JSC Belagroprombank implemented a pig farm project in western Belarus.
NEFCO provided a loan of EUR 5 million from its Investment Fund for developing sustainable procedures and systems for the management of pig manure and slurry at the farms in question.
