RDB links up with European Investment Bank to promote renewable energy
Sri Lanka’s Regional Development Bank (RDB) has linked up with the European Investment Bank (EIB) to promote energy efficiency and renewable energy projects of the micro finance sector, bank Chairman Prasanna Premaratne revealed.
The RDB which is stepping into the fourth decade of regional banking this month, has signed an agreement with the EIB to fund micro finance sector involved in energy efficiency and renewable energy projects under the EIB SME Green Energy Credit Line extended to the government, Mr. Premaratne told Business Times.
The bank has been selected to disburse loans under the EIB SME Green Energy Credit Line and it will take every possible step to up lift micro finance recipients as small or medium scale entrepreneurs, he added.
The EIB has provided 90 million Euros to Sri Lanka which will be used to finance for renewable energy projects and small and medium enterprises.
EIB has lent the money to Sri Lanka at the EIB interest rate (about 2.9 per cent) as a 20-year loan with a 15 year payback, which will be lent to banks by the government with 70 per cent allocated for SMEs and 30 per cent for renewable energy.
The DFCC Bank, Commercial Bank of Ceylon and the Regional Development Bank have each been provided 30 million Euros for disbursement.