Washington, Feb 17 (NationPress) India’s ambitious rooftop solar expansion initiative has successfully acquired a $197.67 million guarantee from the World Bank Group’s guarantee division.

This five-year support is aimed at refinancing a $500 million World Bank loan to the State Bank of India (SBI) for solar systems that are grid-connected and cater to commercial and industrial customers.

The Multilateral Investment Guarantee Agency (MIGA), which operates under the World Bank Group Guarantee Platform, has issued this guarantee to Citibank N.A. for its loan to SBI, as per a media statement.

The installations of rooftop solar panels contribute to clean energy production and help lower greenhouse gas emissions by replacing more costly and carbon-heavy thermal generation. This funding is part of a national initiative aimed at delivering grid-connected rooftop solar photovoltaic (GRPV) systems to both commercial and industrial clients throughout India.

“MIGA’s guarantee will bolster SBI’s expanding portfolio in renewable energy and assist India in achieving its climate objectives,” stated Tsutomu Yamamoto, MIGA Managing Director. “Moreover, the collaboration between MIGA and IBRD on this project exemplifies the cooperative spirit of the One World Bank Group to stimulate private capital mobilization.”

India has set forth ambitious targets for transitioning to clean energy, with investment requirements projected between $160 billion and $300 billion yearly to attain net-zero emissions by 2070. SBI, as one of the largest banking and financial services institutions in the country, is tasked with ensuring at least 7.5 percent of its domestic gross advances are allocated to “green” financing.

The rooftop solar initiative was launched by SBI in 2016, utilizing World Bank funding and technical support to validate the commercial feasibility of rooftop solar solutions for commercial and industrial sectors.

The World Bank program has been instrumental in helping SBI draw in international commercial lenders and private finance. The latest IBRD Implementation Report confirms the achievement of 1,004 MW of GRPV installations as part of the initiative.

Citibank served as the sole lender, mandated lead arranger, facility agent, and MIGA coordinator for this financial arrangement. This transaction builds on a 2024 partnership involving Citi, MIGA, and SBI focused on similar rooftop solar refinancing initiatives.

“This landmark deal showcases Citi’s dedication to advancing sustainable development and aiding India’s transition towards a greener economy,” remarked Stephanie von Friedeburg, Global Head of Citi’s Public Sector Group.

“As our second collaboration with MIGA and SBI in just two years, this project continues to support India’s ambitious rooftop solar agenda, highlighting the effectiveness of public-private partnerships in delivering impactful clean energy solutions and contributing to global climate targets.”

Rana Ashutosh Kumar Singh, SBI’s Managing Director, referred to the refinancing as a “trailblazing transaction.”

“This distinctive partnership among SBI, MIGA, and Citi will substantially aid in diminishing the country’s carbon footprint, aligning with India’s Net Zero goals and reinforcing SBI’s unwavering commitment to sustainable growth.”

The financial backing will enable SBI to lower its borrowing expenses and diversify its funding avenues. MIGA noted that this guarantee also creates additional capacity for further World Bank lending to the Indian government by reallocating the loan to the balance sheets of commercial lenders.

SBI currently serves over 480 million customers through 22,405 retail branches in India and operates 235 offices across 29 countries. It was established in 1921 as the Imperial Bank of India and was reconstituted as the State Bank of India by an Act of Parliament in 1951.

MIGA, part of the World Bank Group, provides political risk insurance and credit enhancement to attract private capital into developing nations. In 2024, the World Bank Group consolidated its guarantee offerings under MIGA, aiming to increase annual guarantee issuance to $20 billion by 2030.