FINANCIAL PRODUCTS

The Sustainable Cities Fund (SCF) finances energy and resource efficiency projects through the provision of:

• investment loans included in a guaranteed portfolio, with the possibility to combine loans with grant support under the Competitiveness and Innovation in Enterprises Programme (CIEP) in a single operation, in two направления corresponding to the specific objectives of CIEP 2021–2027;
• working capital loans included in a guaranteed portfolio, which are linked to or have a complementary role to an investment loan provided by the UDF to Eligible Final Recipients. A working capital loan is eligible where there is an approved investment loan, a clear connection with it, and a smaller loan amount. Grant support in a single operation is not envisaged for working capital financing.

Maximum Eligible Financing Amount

Up to EUR 3,834,689.17.

The maximum eligible loan financing amount may be limited depending on the applicable State aid regime for the specific final recipient/project.

Maximum Eligible Grant Support Amount

1) Technical Assistance for Energy Efficiency

Up to the lower of the actual amount payable by the Final Recipient for carrying out the respective activity and the following ceilings:

• up to EUR 10,225.84 for an initial energy efficiency audit of an enterprise or up to EUR 5,112.92 for an initial energy efficiency audit of an industrial system (Component 1);
• up to EUR 5,112.92 for an energy efficiency audit to verify implementation of the prescribed measures or an assessment proving the achieved levels of energy savings (Component 2).

2) Technical Assistance for Resource Efficiency

Up to the lower of the actual amount payable by the Final Recipient for carrying out the respective activity and the following ceiling:

• up to EUR 5,112.92 for a conceptual or technical design for eligible RES activities.

3) Capital Rebate for Energy Efficiency

15% of the total amount of Eligible Financing.

Final Recipient Own Contribution

No own contribution is required.

Repayment Periods

Energy Efficiency Portfolio

Up to 120 months (10 years).

Resource Efficiency Portfolio

Up to 180 months (15 years).

Grace Period for Principal Repayment

Up to 36 months (3 years) for both the Energy Efficiency Portfolio and the Resource Efficiency Portfolio.

Collateral

The UDF fully transfers the economic benefit of the provided guarantee to final recipients through reduced collateral requirements.

CHARACTERISTICS OF THE FINANCING

A. Market-Based Nature of the Financing

The financing is provided under market conditions, in line with the assessment of the project and the final recipient. Financing terms are determined by the financial intermediary in accordance with the parameters of the financial instrument, while the intermediary transfers the benefit of the guarantee mechanism to the final recipient in the form of facilitations, including:

• lower collateral requirements;
• lower own contribution requirements from the final recipient;
• longer repayment periods;
• longer grace periods for principal repayment.

B. Own Contribution

As a result of the guarantee mechanism, final recipients will generally not be required to provide an own contribution for implementation of the investment. Nevertheless, during the assessment process, the financial intermediary may require an own contribution depending on the individual risk profile of the project and the final recipient.

C. Creditworthiness and Debt Servicing Capacity

The final recipient must have the capacity to service the financing throughout the entire contract period, based on expected cash flows and the financial condition of the enterprise.

D. Collateral

As a result of the guarantee mechanism, financing under the financial instrument requires a lower level of collateral compared to financing provided under standard market conditions.

Specific collateral requirements are determined by the financial intermediary during the assessment process, depending on the characteristics of the project, the risk profile of the final recipient, and the conditions of the financial instrument.

E. Combination with Grant Support

Where applicable, financing may be combined with grant support within a single operation, under the terms and limitations defined in the Technical Specification. Grant support is not automatic and is provided only upon fulfilment of predefined conditions. Eligibility for grant support is assessed separately, in accordance with the applicable rules and conditions.