IFC’s $100 mln to ComBank to boost energy financing projects
View(s):IFC, a member of the World Bank Group, is lending US$100 million to the Commercial Bank of Ceylon aimed at increasing loans for renewable energy and energy efficiency projects in the country.
In a media release IFC said this is its largest financing “for its own-account” in the country. This 7-year financing to Commercial Bank will help reduce greenhouse gasses, promote energy efficiency and support the expansion of conventional and non-conventional renewable energy projects.
Responding to a query from the Business Times, the IFC said that “the exact interest rate for the investment is confidential, but it is in-line with current market rates. The investment has a tenor of 7 years.” The IFC said that “it does not stipulate the interest rates that Commercial Bank will offer for loans in this sector, this will be determined by the bank”, in reply to another query.
The media release quoted Commercial Bank CEO, Jegan Durairatnam as saying, “IFC’s multi-faceted partnership has been instrumental as we develop a green-finance business to make financing more available to our clients that want to mitigate climate-change risks and contribute to a cleaner, more sustainable environment.”
IFC has been a long-term advisory and investment partner with Commercial Bank. Earlier this year, the partnership was further extended with an advisory project to help the bank develop its green-finance business, the IFC media release said.
“IFC continues to innovate through our partnership with Commercial Bank by working together on our shared goals of clean, sustainable and inclusive growth,” said Ariane Di Iorio, IFC’s Regional Industry Manager for the Financial Institutions Group in South Asia. “As Sri Lanka’s financial sector comes together to develop a sustainable finance roadmap for the sector, IFC is keen to engage with banks that support businesses that are greener, climate friendly, and socially inclusive.”
Sri Lanka is a priority country for IFC. IFC’s committed portfolio in Sri Lanka covers projects across a range of sectors, including infrastructure, tourism, renewable energy, finance, and healthcare. IFC also provides advisory services to promote sustainable growth among small and medium enterprises by facilitating access to finance and by offering capacity-building and training opportunities.