OREANDA-NEWS. June 1, 2012. Starting 1 June 2012, the new "Brandenburg-Kredit Erneuerbare Energien" (Brandenburg - Renewable Energies Loan) offers favourable interest rates for investments in the use of renewable energies

Financing will focus on citizens' wind farms

First global loan cooperation in renewable energies at the federal level

KfW Bankengruppe and ILB, the promotional bank of the State of Brandenburg, on 01.06.2012 signed an agreement for a global loan in the sum of EUR 150 million. The global loan agreement is the first in the field of renewable energies and unprecedented at federal level. ILB will provide low-interest loans to entrepreneurs through commercial banks in Brandenburg to finance investments in the construction and expansion of wind farms and the acquisition of wind generators. The global loan will be funded out of the "KfW Renewable Energies Programme - Standard". The interest payable on the loans extended under this global loan will be reduced from funds of KfW, the State of Brandenburg and ILB. Clients will benefit from the cooperation by obtaining loans at particularly favourable terms. With a loan term of 20 years, the nominal interest rates for borrowers are currently between 2.25% p.a. to 6.60% p.a..

A particular focus of the promotional programme of the State of Brandenburg is on investments in citizens' wind farms. These are wind farms in which local citizens, entrepreneurs and property owners hold the majority shares.

"Brandenburg has conditions that are very favourable for wind energy. Through their new global loan cooperation ILB and KfW are contributing to the development of a highly efficient energy system based on renewable energies, thereby advancing the energy turnaround," said Dr Axel Nawrath, member of the Executive Board of KfW Bankengruppe.

Klaus-Dieter Licht, Chairman of the Board of Directors of ILB, added: "With the new Brandenburg - Renewable Energies Loan programme, ILB is promoting the development of the State of Brandenburg into an important wind energy location in Germany. The funds will be made available at favourable terms through commercial banks."

The signing of the agreement marks the continuation of the long-standing cooperation between KfW and ILB. The two banks have concluded 17 agreements for a volume of nearly EUR 4 billion since 1997.