MCB boosts sustainable development with second Green Loan
The MCB is the first bank to seal a partnership with AFD within the framework of this credit line which will enable companies to give life to green projects. (Image: MCB)
The Mauritius Commercial Bank (MCB) and the Agence Française de Développement (AFD) have signed an agreement over a line of credit worth Euro 60 million (approximately Rs 2.4 billion) intended to finance its second Green Loan facility.
Any company willing to implement a green project that meet the criteria established by the AFD will now benefit from this loan, matched with an 8% cashback facility.
The MCB is the first bank to seal a partnership with AFD within the framework of this credit line which will enable companies to give life to projects aiming at a better use of renewable energy, earnings in energy efficiency or reduced carbon footprint.
In order to encourage companies to invest in non-polluting technologies, their contribution to sustainable development would be rewarded by a refund of 8% of the ‘green’ amount invested in any project approved by the AFD.
Under the Green Loan sanctioned by the AFD, the MCB will finance up to 100% of the cost of the green project implemented not only in Mauritius but also in Seychelles, Madagascar, Mozambique and Comoros.
The MCB will propose, according to the project which will be presented to it, a technical support fund of 0.5% of the total amount incurred by the bank. This fund will be complemented by technical support by the AFD.
Besides, another novel feature of this second green loan will be a simplified process for selecting projects with a value lower than Euro 250,000 Euros (approximately Rs 10 million).
During the first two years, half of the new credit line will be exclusively reserved for the MCB, because of its role as a driving force in the success of the first green credit line granted by the AFD in 2009.
Indeed, the MCB paid out Euros 28 million (approximately Rs 1.1 billion), around 70% of liquid assets, to finance 80 green projects between 2009 and 2012. The MCB was also called upon by the AFD to share its success story with some of its executives at its headquarters in Paris, and during meetings with potential partners for similar projects in Africa and Indonesia.
Some noteworthy achievements under the first green loan were electricity savings to the tune of 26GWh; water saving to the tune of a billion liters per year; diesel savings of 951,109 liters per year; gas savings of 635,030 liters per year; and finally, reduction of CO2 emissions to the tune of 133,115 tons per year.
The launch of the second Green Loan confirms the commitment of the MCB to the environment and sustainable development. The Green Loan is part of MCB’s Initiative 175, an action plan in favour of the environment, energy saving and renewable power production.
“We are proud to launch this new credit line of 60 million euros, which will bring significant support to our companies in the form of subsidies. This shows a lasting collaboration of the AFD with the MCB over several years, which we are happy to continue,” said Jean Francois Desvaux de Marigny, Deputy Chief Executive, Banking at MCB.
For his part, Laurence Breton-Moyet, a director at the AFD said, “Thanks to the active participation of the Mauritian banks and particularly the MCB which plays a critical role, we hope that this second credit line will help to take off the Green Economy in Mauritius. It is one of the pillars of Maurice Ile Durable, which will allow to promote economic development and job creation which will last well into the future.”