Tuesday, April 23, 2024

I&M Bank’s customers take up 42% of its Renewable Energy Funding Scheme

Sustainability is at the core of I&M Bank Limited’s business as part of the I&M Group’s commitment to doing business that safeguards the planet for future generations. The Renewable Energy Funding Scheme (“The Green Energy Fund”) was established in 2019 as part of I&M Bank’s Environmental, Social, and Governance (ESG) Programme initiatives, with the core objective to finance clean energy projects for customers as they move to more environmentally friendly solutions. This includes funding of enhanced cost-efficient production processes that will lower their carbon footprint.

The Green Energy Fund has enabled several businesses in the renewable energy sector to access credit facilities to fund solar and biomass energy projects as they switch to clean energy alternatives. Through the financing of the acquisition and set-up costs, I&M Bank has enabled businesses and residential users to make a seamless transition into the use of renewable energy.

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I&M Bank has disbursed over Kes. 2 billion to MSME customers through its Green Energy Fund which translates to a 42% uptake of the Kes 6 billion funds set aside for green funding initiatives since 2019. Given this uptake over the 3 years, the Bank has committed to funding an additional Kes 6 billion shillings to finance renewable energy projects, energy conservation projects, and green energy in transportation.

Additionally, the Bank will be looking to offer to fund for the replacement of energy-inefficient equipment in industries, green energy home solutions, and green energy agriculture solutions in Kenya and across the region.

“As part of our ESG goals and commitment to the green banking agenda, I&M Bank wishes to apply innovative and cost-efficient financing structures across the entire value chain of renewable energy businesses. We will continue to pay keen attention to market demands and innovate new sustainable products that meet the needs of our customers,” said I&M Bank CEO, Kihara Maina.

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Against the backdrop of Kenya’s commitment to a green economy, I&M Bank seeks to address the gaps by diversifying its portfolio of customers engaged in renewable energy ventures to include Engineering, Procurement, and Construction (EPC) contractors and Power Purchase Agreement (PPA) service providers among others, to aggressively grow its green energy portfolio.

“During the pandemic, the slowed-down economy affected the uptake of our green fund. However, 2021 witnessed a good uptake through the implementation of new projects, more specifically for solar projects. With the electioneering period concluded, the market for renewable energy projects looks strong and as I&M Bank we look forward to providing the necessary financial support for energy transition across the region,” said Kihara Maina.

I&M Bank is working with various international agencies, including IFC and FMO, to source green financing to build its support for sustainable investments. The Kenyan market has been extremely receptive to green energy opportunities and the Bank remains committed to enabling the growth of the entire renewable energy ecosystem.

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