Mumbai: Sidbi on Friday entered into a partnership with private sector lender Yes Bank to guarantee 75 per cent of loans of up to Rs 15 crore extended to energy efficiency projects under a World Bank initiative.
The state-run Sidbi expects to provide credit guarantee to more than 500 projects and mobilise financing of up to $127 million through the tie-up.
A memorandum of understanding was signed between Sidbi and Yes Bank under the Partial Risk Sharing Facility (PRSF) for financing energy efficiency projects programme sponsored by the World Bank, Sidbi said in a statement.
The Small Industries Development Bank of India (Sidbi) is the project execution agency whereas Yes Bank claims to be the first Indian lender to be empanelled for the programme.
Sidbi will extend the guarantee for securing up to 75 per cent of the loan amount of up to Rs 15 crore extended by the bank to MSMEs under this programme.
“Financing of energy efficiency projects is still at a nascent stage in India. We are confident that this project will be instrumental in transforming the energy efficiency landscape in India,” Yes Bank’s Group President for Retail Assets, Sumit Gupta said.
The aim of the project is to transform the energy efficiency (EE) market in India by promoting increased level of EE investments, particularly through energy service performance contracting (ESPC) delivered through Energy Service Companies (ESCOs), the statement added.