The European Investment Bank (EIB) has granted a EUR 200 million loan to ICICI Bank of India for projects in the renewable energy sector supporting climate change mitigation.
According to the EIP, the main objective of the climate change framework loan is to make long-term finance available for investments in renewable energy projects that mitigate climate change by contributing to the avoidance or reduction of greenhouse gas emissions.
The framework loan is designed to finance a number of different projects in the renewable energy sector. The operation will focus on electricity generating projects only, especially solar photovoltaic, biomass and onshore wind.
The project will be located in India and will be implemented by private sector companies.
The framework loan will support the EU-India Strategic Partnership, which provides for cooperation in curbing climate change. The sub-schemes eligible for financing will bring economic benefits to the region through the production of energy from renewable resources, the displacement of imported fuel costs, the expanded use of domestic resources and the reduction of greenhouse gas emissions and other airborne pollutants.
The EIB will ensure that all projects are economically and financially viable, technically adequate and in compliance with the Bank’s environmental and social requirements.
This loan is being provided under the EUR 4.5bn Energy Sustainability and Security of Supply Facility (ESF). This will be the first operation structured under the ESF in India and the first EIB operation with ICICI Bank, India’s second largest commercial bank and the largest in the private sector.
