K-Bank offers 'green loans' for buildings
A financial pool is now available for entrepreneurs wishing to turn their office buildings into green facilities.
The “K-Green Building Programme” was recently introduced by Kasikornbank in cooperation with the Agence Francaise de Developpement (AFD). It aims to help entrepreneurs deal successfully with high costs, as well as reducing energy use and global warming, which would lead to improved competitiveness and sustainable growth.
Within three years, the bank aims to lend Bt3 billion under the programme, which receives low-interest funds worth 20 million euros (Bt769.46 million) from AFD.
Krisada Lamsam, vice chairman of KBank, said that given the aggressive competition, adjustment is crucial to endure harsh business environments where costs are elevated, especially in electricity, which accounts for 10 per cent of aggregate business costs.
To promote competitiveness in the long run, businesses must effectively reduce electricity use and ensure energy efficiency.
He noted that the service would cover other initiatives to conserve energy and save the environment – a trend that has thrived among businesses worldwide.
Under the programme, entrepreneurs can borrow up to Bt800 million, with rates below the MLR and a long repayment period of five years, allowing borrowers to repay their debt without hurting their cash flow.
Funds obtained can be used for building retrofit to maximise energy efficiency while also reducing operational and manufacturing resources. These implementations include replacing old lighting technologies with more advanced ones, installing energy-saving air-conditioning systems and acquiring environmentally-friendly low-energy machines. These steps will definitely nurture sustainable growth and lasting competitiveness among businesses, adding to their opportunity to venture into overseas markets where people put higher priority on energy saving and environmental conservation.
As part of the bank’s schemes to support environmental contributions, it recently launched several loan programmes – including K-Energy Saving Guarantee and Top-Up Loan for Energy Saving – as well as energy saving advisory solutions for businesses. It also provides guarantees to energy service firms. There are schemes to promote alternative energy, like a 12-year loan to those investing in rooftop solar.
