State Bank of India (SBI), India’s largest bank and the European Investment Bank (EIB), the European Union’s long-term lending institution, signed a loan agreement for Euro 100 million to be utilised for on-lending to private businesses in the country.
“This is third tranche of a total loan out of total sanction of EUR 200 million by EIB. A first tranche of Euro 55 and second tranche of Euro 45 million was signed on June 25 and November 28, 2014 respectively,” said SBI in a press release.
“The loan will be utilised to support the development of private sector, in particular small and medium-sized enterprises (SMEs), social and economic infrastructure as well as climate change mitigation and adaptation in India,” it added.
The EIB funds will be earmarked for financing projects across a broad range of sectors, including manufacturing, as well as wholesale and retail trade and services.
The entire process was facilitated by SBI’s subsidiary, SBI Capital Market.
