Renewable Energy Promotion Loan

RA resident legal entity , individual entrepreneur

Implementation of projects for the construction, reconstruction and expansion of renewable energy power plants (RESP):

1. FV-150: solar power plants with a capacity of up to and including 150 kV

2. FV-500: licensed solar power plants with a capacity exceeding 150 kV and up to 500 kV for own consumption

3. FV-1050: solar power plants with a capacity of up to 1050 kV produced by an autonomous group ***

4. FV-L: solar power plants licensed by the Public Services Regulatory Commission (PSRC) with a capacity of up to 5 MW

5. Other plants: power plants built on the basis of other renewable energy sources (wind, biomass, geothermal plants, etc.)

6. BESS: Battery energy storage system projects ****

Loan (non-revolving credit line)

AMD
For FV-L projects only—loans for power plants with a capacity of up to 5 MW may also be provided in US Dollars and Euros.

• FV-150 minimum – 500,000 AMD, maximum – 80,000,000 AMD
• FV-500 minimum – 10,000,000 AMD, maximum – 200,000,000 AMD
• FV-1050 minimum – 10,000,000 AMD, maximum – the permissible limit established by the Bank's internal legal acts regarding the maximum risk exposure per single borrower
• FV-L minimum – 70,000,000 AMD or 180,000 USD (EUR), maximum – the permissible limit established by the Bank's internal legal acts regarding the maximum risk exposure per single borrower

• Other stations minimum – 1,000,000 AMD; maximum – the permissible limit established by the Bank’s internal regulations regarding the maximum risk exposure per single borrower.
• BESS minimum – 500,000 AMD; maximum – the permissible limit established by the Bank’s internal regulations regarding the maximum risk exposure per single borrower.

! A loan of up to 5,000,000 AMD may be granted to a start-up business (a business is considered a start-up if the potential borrower has not operated any business during the preceding 6 (six) months).

• FV-150 500,000 – 10,000,000 AMD: 9.5%; 10,000,001 – 80,000,000 AMD: 9.5%
• FV-500 9.0%
• FV-1050 9.0%
• FV-L AMD 9.0%; USD (EUR): 5.35%
• Other stations 1,000,000 – 10,000,000 AMD: 9.0%; 10,000,001 AMD – up to the permissible limit defined by the Bank's internal legal acts regarding the maximum risk exposure per single borrower: 9.0%
• BESS 500,000 – 10,000,000 AMD: 9.0%; 10,000,001 AMD – up to the permissible limit defined by the Bank's internal legal acts regarding the maximum risk exposure per single borrower: 9.0%

• FV-150 500,000 – 10,000,000 AMD: 9.9%; 10,000,001 – 80,000,000 AMD: 9.9–10.0%
• FV-500 9.4–9.5%
• FV-1050 9.4–9.5%
• FV-L AMD: 9.4%; USD (EUR): 5.5%
• Other stations 1,000,000 – 10,000,000 AMD: 9.4%; 10,000,001 AMD up to the permissible limit defined by the Bank's internal legal acts regarding the maximum risk exposure per single borrower: 9.4–9.5%
• BESS 500,000 – 10,000,000 AMD: 9.4%; 10,000,001 AMD up to the permissible limit defined by the Bank's internal legal acts regarding the maximum risk exposure per single borrower: 9.4–9.5%

In case of non-target use of loan funds by the Borrower, significant deviations from the project, failure to comply with the conditions set by the Program, as well as failure to meet the environmental and social requirements of the GAF (Appendix 1), the Bank has the right to unilaterally increase the loan interest rate or demand full or partial early repayment of the loan.

In case of non-qualification of the loan by the GAF or termination of the qualification of the provided loan, the loan is considered to be provided with the Bank's own resources, after which the loan continues to operate in the Bank at the current annual interest rate in accordance with the contractual term of the loan provided with the Bank's own resources within the framework of the "Commercial Loans" loan type.

0.5%

120 months

0 - 24 months

The loan amount (credit line limit) may constitute up to the following percentage of the project cost:
• FV-150` 100%
• FV-500` 80%
• FV-1050` 80%
• FV-L` 80%
• Other plants` 80%
• BESS` 100%

1.     Loans to legal entities and individual entrepreneurs are provided based on the positive results of the financial analysis of business activities for at least the previous 6 months. In the case of FV-500, FV-1050 and FV-L power plants, the expected cash flows/income from the implementation of the project may be taken into account.

2.     Loans to start-up businesses may be provided based on the analysis of future cash flows and/or other recurring income.

3.    Separate loans are not provided for the payment of taxes, other state payments and customs duties on acquisitions.

4.    BEES projects must meet the minimum technical requirements set out below:

4.1.     FV-150 projects:         Appendix 2

4.2.    FV -500 projects:       Appendix 3

4.3.    FV -Լ projects:           Appendix 4

4.4.    BESS projects:           Appendix 5

5.    A prerequisite for the approval of loans for FV-150 (only for power plants installed on land), FV-500, FV-1050 and FV-L power plants, as well as BESS projects, and other projects, if necessary, is the technical assessment and approval of the BEES project by the Project Consultant “Fichtner GmbH & Co KG”.

6.    Financing for FV-500, FV-1050 and FV-L power plants, and other projects, if necessary, is provided in stages (in installments), with the following conditions:

6.1.     For the provision of each new stage (in installment) (starting from the second installment), a prerequisite is the presence of a positive technical conclusion of the Project Consultant on the intended use of the loan funds received up to that point, as well as ensuring the conditions contained in the Project Consultant’s technical conclusion

6.2.     The loan funds provided for each new stage (tranche) may be provided only if the condition for the implementation of the relevant investment envisaged by the project by the Borrower is ensured

6.3.    The loan funds subject to provision in the last stage (tranche) shall constitute at least 20% of the loan amount, which may be provided no earlier than after the final monitoring carried out by the Project Consultant, and no later than within one year.

100% of the expenses incurred with loan funds must be documented.

Credit history:

1.     No delinquency and/or total number of days overdue for the last 12 months shall not exceed 30 days.

2.     No current overdue liabilities.

Age of the borrower who is a private entrepreneur: 18-65 years.

1.     Annuity (equal monthly payment of principal and interest).

2.     Differentiated (equal monthly payment of principal and interest).

3.    Individual payment schedule, depending on the specifics of the business.

Repayment method at the customer's choice.

Not applicable

0.1% daily

0.13% daily

In case of early repayment of the loan, a penalty of 5% of the amount repaid early is applied.

Applicable to loans with a contractual amount of AMD 5,000,001 and more.

In case the loan interest rates are subsidized within the framework of the “Targeted Program for Promoting Productivity” (Appendix 1) approved by the RA Government Resolution No. 355-L dated March 26, 2020 “On Approval of Targeted Programs for Modernizing the Economy”, no early repayment penalty is applied.

1.   Real estate and/or

2.   Guarantee/s

2.1. In the case of clients who are legal entities, personal guarantees of the founders of the business and the beneficial owners,

2.2. In the case of individual entrepreneurs, if the beneficial owner is a third party, a guarantee of the beneficial owner.

3.   Movable property

Other security measures may also be provided by the decision of the Credit Committee.

In the case of a vehicle pledge, the production period cannot exceed:

1.     for cars of Russian production - 5 years,

2.     for cars of foreign production - 10 years.

Loans within the specified amount for the following projects are provided only with guarantee(s) acceptable to the Bank:

1.         FV-150:                  500 000 – 10 000 000 AMD

2.         Other plants:        1 000 000 – 10 000 000 AMD

3.        BESS:                     500 000 – 10 000 000 AMD 

In addition, loans up to 3,000,000 AMD can be provided with 1 guarantee, and loans from 3,000,001 to 10,000,000 AMD can be provided with 2 guarantees.

According to Appendix 6

Motor vehicles are subject to mandatory "Casco" (physical damage and theft) insurance in favor of the Bank, at least in the amount of the loan amount and subject to annual renewal of the insurance contract throughout the entire loan term.

The insurance is carried out by the customer.

The collateral is subject to valuation by an independent property valuation agency cooperating with the Bank and/or an employee of the Bank, depending on the loan amount.

The valuation by the Bank employee is carried out free of charge.

An individual (18-65 years old):

1. who has no current overdue credit obligations;

2. whose total number of overdue days in the last year shall not exceed 30 days.

At least one of the guarantors shall be the owner of real estate or be provided with a registered salary.

Decision on the loan application within up to 7 working days after submission of the required documents.

Up to 1 working day after the decision is made

After submitting all required documents and completing the state registration of the lien—up to 1 working day.

30 working days
However, the Bank reserves the right to refuse the granting of the loan if any of the conditions deemed essential for the positive decision to grant the loan have changed.