Guarantees for Loans to Small and Medium Enterprises

Overview

Mon, 05/06/2013 - 15:05 -- admin
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Kafalat Energy programme overview

Kafalat Energy is the result of a partnership between the European Union and Kafalat SAL to address energy constraints faced by SMEs while ensuring reduction of negative environmental impact.

This programme will provide eligible SMEs with loan guarantees for investments in Energy Efficiency and Renewable Energy.

The EU support enabled the extension of resources to increase the maximum loan amount and extend the duration of the guarantee and the grace period.

The Kafalat Energy programme distinguishes between three types of investments, and thus three types of guarantees.

Name of   Programmes

Programme A -
Energy Efficiency

Programme B -
Renewable Energy generation for internal use

Programme C -
Renewable Energy generation for sale to third parties

Investment type

To finance the adoption of or conversion to sustainable energy consumption, i.e. to optimize an energy system to consume less 

To install a renewable power generation system, and consume the produced electricity for internal use, to replace fossil fuel based electricity 

To install a renewable power generation system, with the aim of selling all or part of the produced electricity to others, including the public grid

Maximum loan amount

LBP 500 Million 
or c/v in USD

LBP 500 Million
or c/v in USD

LBP 750 Million
or c/v in USD

Loan Duration

Up to 10 years

Up to 15 years

Up to 15 years

Guarantee

75%

75%

75%

Grace Period

Between 6 months and 1 year

Between 6 months and 2 years

Between 6 months and 3 years