BDL Environmental Loans

Banque Du LibanFinancing Unit

By virtue of the Code of Money and Credit of 1963, the Central Bank of Lebanon’s general mission is to “safeguard the national currency in order to ensure the basis for sustained social and economic growth”. This mission specifically consists of:

Safeguarding monetary and economic stability; Ensuring the soundness of the banking sector; Developing money and capital markets; Regulating and developing the payment, clearing and settlement

systems as well as electronic financial operations.

BDL Mission Statement

The Central Bank controls banks’ liquidity: by monitoring or adjusting discount rates; by imposing on banks reserve requirements on their

deposits in LBP.

The Central Bank can also regulate banks’ credit in terms of volume and type: by imposing credit ceilings to limit credit risk; by directing credits toward specific sectors or purposes.

BDL Tools

The Central Bank of Lebanon can facilitate financing investments in specific economic sectors

by exempting banks from part of the required reserve requirement to finance these projects at

low cost.

Target

BDL is currently working with Ministry of Power, UNDP, the European Union (EU), and the Lebanese Center for Energy Conservation (LCEC) to provide potential investors in green technology, specifically in energy saving and renewable energy technology, with low cost financing and medium to long term maturities.

Environmental Loans

Develop a vehicle to finance Energy Efficiency and Renewable Energy, called NEEREA (National Energy Efficiency and Renewable Energy Action).

Cooperate to involve International Donors and organizations (i.e. EU) to support NEEREA

Develop awareness and capacity building activities among Lebanese Commercial Banks and end consumers

MOU Signed between BDL, UNDP and LCEC

Industrial Sector, Touristic Sector, Commercial Sector, Medical Sector, Educational Sector, Residential Projects (Buildings, Houses), Other sectors…

Sectors that can benefit from the NEEREA mechanism

Energy Related (NEEREA Mechanism):

Any undertaking related to Energy Saving and Renewable Energy.

Lighting, Ventilation systems, Generators, Heating and Cooling, Refrigeration, Furnaces, Boilers, Solar Energy, Photovoltaic, Biomass, Wind energy, Buildings envelope, IT Equipment Applications.

Non-Energy Related:

Any project concerned with pollution abatement, solid waste and waste water treatment, recycling.

Ecotourism, organic agriculture, and landscaping.

Environmental Projects

New Projects:

Repayment period up to 10 years, beginning after the end of the grace period.

Grace period ranging from 6 months to 4 years.

Re-modeling Existing Projects:

Repayment period up to 10 years, including the grace period.

Grace period ranging from 6 months to 2 years.

Environmental Projects

Subsidized Interest Environmental Loans

Non-Subsidized Environmental Loans

The value of the loan extended to finance EnvironmentalEnvironmental Projects would be calculated as follows:

The cost of the property is excluded from the above scheme. The certification system developed by LEED is adopted, or equivalent classifications

from other internationally recognized systems.

Nature of Project Rating Loan AmountNew Project Not rated Environmental Cost

Certified 15% of Total Project Value

Silver 25% of Total Project Value

Gold 35% of Total Project Value

Platinum 45% of Total Project ValueExisting Project Rated or Not Rated Environmental Cost

Rated Environmental Projects

Financing Cost for Rated Environmental Loans

A grant contract was signed to support investments in sustainable energy in the amount of €12,200,000. The Central Bank would, pay a grant to subsidize loans extended to finance energy projects, with a maximum amount of $1m. energy loans:

Grant Contract Signed between BDL and EU

Thank YouBanque Du Liban

Financing UnitPhone: +961 1 743469

Fax: +961 1 750701PO.Box 11-5544www.bdl.gov.lb