State Bank of India (SBI) said it has signed a EUR 150 million (₹1,240 crore) loan agreement with KfW, the German development bank.
This long-term loan will facilitate new and upcoming capacity in the solar sector and further contribute to India’s goals announced during COP26.
Ashwini Tewari, MD, SBI said, “The successful closure of phase-1 under Solar Partnership - Promotion of Solar/PV between SBI and KFW, paves the way for the current phase-2 in our partnership with KfW.”
“With the signing of this facility, we have taken another step in the direction of sustainable financing arrangements for meeting our country’s ambitious renewable capacity goals and upholding environmental and social standards in our endeavours,” he added.
The arrangement of the loan was facilitated by SBI’s investment banking subsidiary, SBI Capital Markets.
In 2015, the Government of India and the Federal Republic of Germany had signed the Memorandum of Understanding (MoU) to foster the use of solar energy in India through technical as well as financial cooperation. Through this MOU, Germany had expressed its willingness to provide the concessional loans to India in the range of EUR 1 billion through KfW, SBI said in a statement.
