UAE fund cuts loan rates for renewables in developing nations - report
Solar power system in Nepal. Author: Engineering for Change. License: Creative Commons, Attribution-ShareAlike 2.0 Generic
Nov 18, 2014 - The Abu Dhabi Fund for Development (ADFD) will offer loans with interest rates of only 1% to 2% for renewable energy projects in developing countries, Gulf News reported Friday.
More specifically, ADFD’s 1% loans will be available for projects in the least developed and low-income countries, the paper said, citing a spokesperson for the International Renewable Energy Agency (Irena). The 2% loans, in turn, will be for lower- and upper-middle income countries.
ADFD has developed a USD-350-million (EUR 279.5m) concessional loans programme in coordination with Irena. In January 2014 it awarded USD 41 million in first-cycle financing to 35 MW of green projects in Ecuador, Sierra Leone, the Maldives, Mauritania, Samoa and Mali. In the second cycle, planned for January 2015, ADFD will provide USD 59 million more. The planned USD 350 million will be distributed over seven years.
The aim of the low-interest financing is to bring electricity to more rural communities worldwide. The loans come with a 20-year term, which includes a 5-year grace period, according to the report.