Published
03/19/2025, 12:25Financing green technologies: which banks in Kyrgyzstan support environmental projects?
The transition to a green economy is becoming a global trend, and Kyrgyzstan is not left behind. Financing plays a key role in this process, and banks are becoming important players in supporting environmentally sustainable projects. However, despite the growing interest in green technologies, not all financial institutions in the country offer loan products for such initiatives.
‘Akchabar’ analysed the offerings of 21 banks and found that only nine of them provide loans for the development of green technologies.
Bank programmes to support sustainable projects cover various areas, including installation of solar panels, energy-efficient construction, modernisation of equipment to reduce carbon dioxide emissions, as well as the introduction of technologies for sustainable agriculture and water conservation.
Loan terms vary from bank to bank. Interest rates range from 10 per cent to 27 per cent per annum in KGS. In some banks it is possible to issue a loan in US dollars and euros, which gives borrowers more opportunities to choose optimal conditions.
Today, loans for the development of environmentally friendly technologies are offered by Aiyl Bank, Eldik Bank, Bakai Bank, KICB, Demir Bank, Keremet Bank, Dos-Kredobank, Kompanion Bank and Mbank.
What conditions do the banks offer?
Borrowers can take advantage of a grace period: up to three months on interest and up to six months on principal. This makes the terms flexible and convenient for businesses.
In addition, green financing under Eco-Murabaha Islamic principles can be obtained with reduced mark-ups until 1 July as part of the promotion.
In ‘Bakai Bank’ the interest rates are higher and amount to 17% in national currency. However, clients can apply for a loan in foreign currency at 8%. The bank finances the purchase of environmentally friendly transport, installation of sewage treatment plants and introduction of green technologies in agriculture. Small businesses can apply for a loan of up to KGS 300 thousand without collateral, which greatly simplifies access to financing.
In KICB the rate is 17 per cent in KGS and 10 per cent in USD. The maximum loan amount is KGS 36 million. This indicates that the bank is oriented towards large projects. Financing covers energy saving, water saving and renewable energy production. In addition, it is possible to get up to 10 million soms for house insulation at 17%.
‘Keremet Bank’ is also involved in green financing. It offers the possibility of obtaining loans without collateral and surety, but interest rates start at 21%.
‘Dos-Kredobank’ offers several programmes in the field of eco-lending. Within the ‘ECO-Tourism’ initiative the interest rates start from 26.9% per annum for small amounts up to KGS 150 thousand, and for loans over KGS 1 million the interest rate is reduced to 20%. For insulation of houses rates from 20 to 27%.
‘Eldik Bank’ offers a rate of 11% for loans up to KGS 150 million, which makes it attractive for large projects.
Mbank is actively developing green loans, offering special programmes to support small and medium-sized businesses. The Green Tourism loan product is designed to finance projects in the hospitality sector, including cafes, restaurants, hotels and yurt camps.
The money can be used to insulate buildings, improve heating and ventilation systems, purchase energy-efficient equipment and introduce renewable energy sources. Interest rates start from 19 per cent per annum in KGS and the maximum loan term is 60 months. The bank also provides free counselling services on energy efficient technologies.
These banks offer loans under the KyrSEFF initiative aimed at improving housing comfort and reducing utility costs. One of the main advantages of the loan is the possibility of receiving a grant of up to 15 per cent of the loan amount, as well as free technical advice.
Loan funds can be used to expand living space, insulate houses and install energy-saving equipment. The interest rate is 20% per annum and the loan amount can range from 25 thousand to 4.5 million KGS.
What are the prospects for green finance in Kyrgyzstan?
Kyrgyzstan, as a party to the Paris Climate Agreement, has committed to reduce greenhouse gas emissions by 15.97% by 2030. These targets have become part of the national strategy aimed at reducing climate impact and transition to sustainable development.
The banking sector plays an important role in achieving these ambitious targets. State-owned banks, such as Aiyl Bank and Eldik Bank, offer the most favourable terms, while private banks, including Bakai Bank and Dos Kredobank, create healthy competition by expanding opportunities for borrowers.
In the future, green finance may become an integral part of the Kyrgyz economy. It will open new business opportunities, improve the country's competitiveness and contribute to preserving the environment for future generations.
