Capital & Credit launches 'green' loans
Capital and Credit Financial Group is offering loans as low as 9.5 per cent, pitched at renewable energy sector through its merchant-banking arm. The loans, which are capped at J$5 million, can be used to finance renewable energy and solar water-heater systems.
Among the projects that new and existing clients of the merchant bank can use the funds to finance are windmills, solar panels or turbines. Loan recipients will get a maximum 10 years to repay.
Additionally, Capital and Credit Merchant Bank is also offering financing for solar water heaters up to a maximum of J$250,000 with repayment period of three years.
The loan products has been on the market since October 3, 2011. Renewables are a new line of business for CCMB, whose suite of products includes personal and corporate loans.
Capital and Credit group is in the process of being acquired by Jamaica Money Market Brokers, but the transaction has to be approved by regulators.
Meantime, Capital and Credit says its growth strategy is to capitalise on opportunities to grow loans and other fee-income activities, as well as develop new value-added products and services.
At June 30, the company reported that there was a small reduction in its loan portfolio after provision for loan losses, which now stands at J$6.39 billion when compared with the J$6.48 billion for the similar period ending June 30, 2010.
The company attributes the decline to adverse economic conditions.
Capital and Credit is one of the many institutions now pushing to 'go green'.
Scotiabank has facilities in place that can be used for renewable-energy products, as well as government entities such as the EXIM Bank, National Housing Trust and the Development Bank of Jamaica.