Businesses in Moldova will have access to finance to help them reduce their energy consumption.

The European Bank for Reconstruction and Development (EBRD) has provided Mobiasbanca-Groupe Societe Generale with a €5.5 million (£4m) loan for on-lending to private firms.

The cash will be used to invest in energy efficiency and renewable projects.

The loan will be complemented by EU grants to provide incentives for borrowers of up to 20% of the amount.

Julia Otto, Head of the EBRD office in Chişinău, said: “With this third loan to Mobiasbanca for financing sustainable energy projects in the private sector of Moldova, we are responding to growing market demand for such finance and know-how.

“We are pleased to continue these joint efforts to further increase competitiveness, profitability and energy savings for private companies here in Moldova.”

The EBRD started financing energy efficiency projects in the country since 2010, helping more than 150 businesses cut their energy bills and reduce carbon emissions.