EIB loans €200 million for large Indian solar projectsStaff Writer | April 1, 2017
The European Investment Bank confirmed new support for solar power generation in India in partnership with the State Bank of India.
Green energy In partnership with the State Bank of India
Four schemes across the country, with a generation capacity of 530 MWac, have already been identified.
The European Investment Bank is one of the world’s largest lenders for renewable energy investment and this new initiative represents the EIB’s largest ever support for solar power in Asia.
Owned by the 28 members states of the European Union the European Investment Bank is the world’s largest international public bank.
The loan agreement was formally announced in New Delhi ahead of the inauguration of the first permanent presence in India of the European Investment Bank by Finance Minister Jaitley, European Investment Bank President Werner Hoyer and Vice President Andrew McDowell, responsible operations in India and South Asia.
The €200 million 20 year long-term European Investment Bank loan will support individual projects following technical and financial due diligence.
It is expected that projects in Telangana and Tamil Nadu states, and elsewhere in the country, will be backed by the new initiative. The European Investment Bank will support investment in individual solar projects alongside financing from Indian banks and project promoters.
The entire process of arranging the loan was facilitated by SBI’s subsidiary, SBI Capital Markets.
Whilst in the country the high-level European Investment Bank delegation will meet the Managing Directors of the India Renewable Energy Development Agency (IREDA) and India Infrastructure Finance Limited (IIFL) to discuss future support for renewable energy investment in India.
The European Investment Bank has financed projects totalling €1.7 billion (approx.INR 11,900 crores) in India since 1993.
Last year the European Investment Bank Group provided €84 billion to finance new investment around the world, including €19.6 billion for climate related investment. ■