Bank of Valletta has signed an operational agreement with the European Investment Bank (EIB) and the European Investment Fund (EIF) to launch a clean energy financing product that benefits from a guarantee and interest rate subsidy financed by the European Regional Development Fund (ERDF).
Commenting on the signature of the agreement, EIF Chief Executive Alain Godard said: “I am delighted with today’s signature as this is the first financial instrument using structural funds that targets projects related to energy efficiency and renewable energy. This instrument is a clear novelty for the market as it combines a guarantee with an interest rate subsidy programme while banks will be supported by a consultant selected by EIB Advisory Services to measure the impact of investments generated by the portfolio. It is very encouraging that the Maltese Managing Authority decided to pioneer this financial instrument with the EIF and I look forward to continued cooperation going forward.”
Bank of Valletta was awarded a major share of the fund following a public call issued by the European Investment Fund. BOV customers will benefit from reduced rates of interest that will lower costs for households and enterprises requiring bank financing to acquire energy efficient or renewable energy products.
“We are delighted to participate in this pilot European financial instrument, more so when this is a first for Europe,” declared Albert Frendo, BOV’s Chief Credit Officer. “Once again Bank of Valletta is leading the introduction of accessible and affordable green financing to the market. This will effectively translate into more households and businesses affording to invest in sustainable products and systems that will have a positive impact on our environment. This is very much in line with our ESG commitment to contribute towards cleaner energy through the Bank’s suite of banking, investments and financing products.”
Kenneth Farrugia, Chief Business Officer at Bank of Valletta stated that the benefits of the partnership with the European Investment Fund will be leveraged to the Bank’s suite of personal loans, home loans as well as business loans. “As a result of this initiative, our customers will benefit from lower collateral requirements and highly competitive interest rates. This will apply to loans taken to purchase and implement a wide range of products and systems that will make local homes and businesses more sustainable and energy efficient. Our collaboration with EIB and EIF is a key step towards addressing climate change and investing in a sustainable future through green financing.”
The Energy Efficiency and Renewable Energy (EERE) Malta Launch was held remotely attended by Hon Dr Stefan Zrinzo Azzopardi, Parliamentary Secretary for European Funds; Paul Zahra, Permanent Secretary for European Funds; Dario Scannapieco, Vice President, European Investment Bank; Alain Godard, Chief Executive, European Investment Fund; Albert Frendo, Chief Credit Officer, Bank of Valletta; and Marcel Cassar, Chief Executive Officer, APS Bank.
EERE Malta is co-financed by the Republic of Malta, the European Union under the European Regional Development Fund.