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