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KBank and French Development Agency jointly launch “Green Loans”

          KASIKORNBANK, in cooperation with the Agence Française de Développement (AFD), is going to provide financial support under the Green Building Credit Facility program, which aims at helping entrepreneurs deal successfully with high costs, as well as reducing energy use and global warming, which will lead to improved competitiveness and sustainable growth. The Bank eyes 3 billion Baht extension of such loans within three years.
          Mr. Krisada Lamsam, Vice Chairman of the Board of KBank, said that given aggressive competition today, business adjustment is crucial to endure harsh business environments where costs are elevated, especially in electricity which accounts for 10 percent of aggregate business costs. To promote competitiveness in the long run, businesses must effectively reduce electricity use and ensure energy efficiency. 
          KBank, as the leader in green credit lines, signed a credit facility agreement with AFD, a French public financial institution with more than 90 local agencies worldwide that promotes economic development synonymously with environmental responsibility – such as embracing an efficient energy consumption, to jointly launch the K-Green Building Program as a financial resource for green entrepreneurs who wish to turn their office buildings into green facilities, along with other initiatives to conserve the energy and save the environment – a trend that has recently thrived among businesses worldwide. This collaboration between KBank and AFD has received a tremendous support from the Embassy of France in Thailand and its signing ceremony was witnessed and attended by H.E. Mr. Thierry Viteau, Ambassador of France to Thailand.
          The K-Green Building Program will provide a long-term loan of 800 million Baht, with rates below the MLR and 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 maximize its 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 system and acquiring environment-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. The Bank plans to extend 3 billion Baht loans under this K-Green Building Program within three years.
          The Agence Française de Développement (AFD) is a French development agency that has implemented French development policy for more than 70 years aiming at promote development models that have proven more resilient, less polluting- such as an efficient energy use, in collaboration with local financial institutions in different countries. In Thailand, AFD collaborates with KBank, a leading supporter of green projects, as its partner to offer loans for corporate customers to enhance their energy efficiency. Under this cooperation, AFD will offer low-interest financing of 20 million Euro.
          KBank has consistently been implementing programs that promote green business, including 800 million Baht in loans for energy use reduction and environmentally friendly projects. Notable programs include K-Energy Saving Guarantee Program and Top-Up Loan for Energy Saving (Lighting Solution), as well as energy saving advisory solutions for businesses. Moreover, the Bank offers K-Equipment Leasing and Commercial Loan for investment in developing energy management system, aiming at the highest efficient energy utilization, with guarantee of energy service companies (ESCOs).
          KBank has also been providing financial support for alternative energy projects. Recently, KBank introduced the Solar Roof Top loan program, wherein customers enjoy multiple benefits, e.g., up to 100 percent loan limit within a 12-year lending term. While their energy costs substantially decrease, they will be able to repay loans without having any impact on cash flows for normal business operations. Energy saving of such projects is also guaranteed by ESCOs. This program is one of KBank's CSR projects.