ADB and PNB sign loan agreement for solar projects
The Asian Development Bank (ADB) and Punjab National Bank (PNB) signed a US$ 100 million loan — to be guaranteed by the Government of India — that will finance large solar rooftop systems on industrial and commercial buildings throughout India. The PNB will use the ADB funds to make further loans to developers and end users to install rooftop solar systems.
This is the first tranche loan of the US$ 500 million multi tranche finance facility Solar Rooftop Investment Program (SRIP) approved by ADB in 2016. The financing includes US$ 330 million from ADB’s ordinary capital resources and US$ 170 million from the multi donor Clean Technology Fund (CTF) administered by ADB. The first tranche loan of US$ 100 million would be financed entirely from the CTF.
“With a sharp drop in the price of solar panels, India has a huge potential to expand its use of solar rooftop technologies,” said Kenichi Yokoyama, ADB Country Director.