Following the KFW agreement, SBI is currently in discussions with the EIB for 200 million euros in green funding
- ByStartupStory | November 14, 2022
State Bank of India (SBI) is in negotiations with the European Investment Bank for roughly Euro 200 million to fund climate finance after obtaining a Euro 150 million Credit line for solar energy finance from a German financial institution.
The largest lender in the nation last week secured 150 million euros in green financing from KFW, a company owned by the German government, on amenable conditions with a protracted repayment horizon. Solar energy projects will be financed by SBI using funds.
Within the framework of the solar partnership with India, KFW has given SBI a second loan. The same amount has already been loaned out once before.Senior SBI executives claimed that these are affordable, long-term lines. A credit line that the EIB is eager to sign is currently undergoing legal due diligence.
The bank has already committed to provide payments to the organisations who would benefit from KFW’s credit support for solar energy. The market for solar energy is currently developed. According to officials, the proposed funding arrangement with KFW will be more general and include electric vehicles.
He added that because the technologies and systems relating to renewable energy and climate themes are still developing, the bank must be cautious when making loans.India has set a lofty aim of doubling its use of solar energy in the next eight years. However, just 20% of Indians are currently plugged into the power grid. Electrification is being pushed by the government. Future energy demand from households that are already supplied with energy will also increase, so a sharp rise in consumption is to be anticipated. In addition, more greenhouse gases will be released.
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