EIB to back India's renewables via EUR 40m loan to SREI
Sep 16, 2013 - The European Investment Bank (EIB) said Monday it would lend EUR 40 million (USD 53.4m) to SREI Infrastructure Finance Ltd which will on-lend the money to renewable energy and energy efficiency projects in India.
The Italian Export Credit Agency SACE SpA will support the loan as well. The EIB noted that these EUR 40 million are the first instalment of an EUR-80-million credit.
Indian non-banking financial firm SREI will use the loan proceeds to help finance clean power and heat projects with a focus on wind, photovoltaics, hydropower and high-efficiency cogeneration. SREI has to identify and pre-select the projects, which will after that be subject to due diligence by the EIB. The latter explained that it needs to be sure that all undertakings to receive financing are economically and financially viable, technically appropriate and in line with its environmental and social requirements and Guide to Procurement.
The SREI loan is coming under the Energy Sustainability and Security of Supply Facility (ESF) which stands at EUR 4.5 billion.