ข่าวประชาสัมพันธ์การเงิน/หลักทรัพย์

KBank introduces K-Top Up Loan for Energy Saving (Lighting Solution) encouraging SMEs to use LED

          KBank introduces K-Top Up Loan for Energy Saving (Lighting Solution) encouraging SMEs to use LED bulbs in saving 80 percent of energy costs with credit limit of up to 100 percent of light bulb replacement costs. Additional financial support from government agencies is also available.

          Advising an energy-saving strategy for SMEs, KASIKORNBANK has introduced K-Top Up Loan for Energy Saving (Lighting Solution), a clean loan with credit limit of up to 100 percent of light bulb replacement costs. The LED bulbs help save up to 80 percent of electricity costs, while SMEs will reach the breakeven point within two years under this program. The Department of Alternative Energy Development and Efficiency (DEDE), under Ministry of Energy, and Provincial Electricity Authority (PEA) will also provide additional financial support for qualified SMEs under this program.
          Mr. Boonchan Kulvatunyou, KASIKORNBANK First Senior Vice President, said amid intense business competition and rising costs – particularly energy costs, which represent 10 percent of total costs – SMEs that can manage to reduce power use and boost their energy efficiency will be able to increase their long-term competitiveness. 
          In light of this, KBank has introduced K-Top Up Loan for Energy Saving (Lighting Solution) for SMEs to replace their existing light bulbs with LED bulbs, which can save up to 80 percent of energy costs. Qualified SMEs will also be offered financial support from the DEDE, and PEA. 
          Under KBank’s new program, eligible SMEs will be extended a clean three-year loan of up to 100 percent of total investment in light bulb replacement, which includes the expense of LED bulbs, bulb installation and other related costs. The credit turnaround time is two business days, following submission of SMEs’ investment plan.
          Participating energy service companies (ESCOs) and light bulb suppliers which are keen in energy-saving management will also offer complete services including light bulb replacement planning, advisory service on appropriate lighting quality and energy-saving results from the program, with a product warranty for LED bulbs and a performance warranty for energy-saving investment.
          Eligible SMEs must be those with light consumption at least 12 hours per day, e.g., operators in food and beverages, chemicals, paper, textiles, hospitals, hotels, and retail businesses. Interested persons can contact their relationship manager or the K-Biz Contact Center by calling 0 2888 8822 for more information.
          Mr. Pramoul Chanpong, Director General of the DEDE, said the Department is promoting the use of energy-saving materials and equipment among SMEs by encouraging them to switch to LED bulbs as well as make changes to their machines and equipment in order to conserve power. Financial support will be offered of up to 30 percent of their investment, or a maximum of 3 million Baht per SME. Eligible SMEs’ investment plan must be in line with criteria stipulated under this program. Prices of equipment and installation must be in accordance with the median prices specified by DEDE. The breakeven point must be reached within seven years.
          Mr. Suwat Chiochanchai, Deputy Governor (Planning & System Development) of the PEA, said the PEA has recently introduced the energy-saving “PEA 1 Save, 1 Baht” program, which is a partnership between the PEA, Ministry of Industry and Energy Policy and Planning Office (EPPO), under the Ministry of Energy. With this program, the Ministry of Energy offers financial support at the fixed rate of 1 Baht per 1 kilowatt of energy saved. Stipulated conditions include a change of light bulbs from T8 to LED bulbs by at least 250 bulbs, which must save at least 50 percent of power compared to existing lighting devices. The quality and longevity of the new LED bulbs must be better than existing bulbs with equivalent brightness. 
          Mr. Boonchan added that SMEs may choose to apply for K-Top Up Loan for Energy Saving (Lighting Solution) to finance their entire investment, or use financial support from the aforementioned programs provided by the authorities plus part of KBank’s loan. He added that a change to LED bulbs with efficient energy conservation can be easily and swiftly completed. This is also a self-financing project in which SMEs can use saved energy expenses to repay their debts, while their cash flows will not be impacted. KBank expects to extend at least 500 million Baht of loans under this program.
          KBank has continued its policy to support “green” businesses through the Bank’s loans for businesses which help save energy and environment-friendly businesses, including the K-Energy Saving Guarantee Program. Other related services include advisory service on all-around energy conservation for SMEs, loans for energy management investment for maximum power saving through machinery lease, as well as long-term loans. Participants in these programs will also be guaranteed by ESCOs in terms of energy-saving performance. The Bank also maintains its leadership in financing renewable power plants.