The Presidents/ Chief Executives,

All Banks and DFIs

Dear Sirs/Madams,

SBP Financing Scheme for Renewable Energy and

Islamic Financing Facility for Renewable Energy

This is with reference to IH&SMEFD Circular No. 10 dated July 26, 2019 and IH&SMEFD Circular No. 12 dated August 21, 2019 wherein SBP has introduced the captioned refinancing schemes. Reference may also be made to IH&SMEFD Circular Letter No. 23 dated July 22, 2020.

2. The Category III of the subject Schemes was introduced to facilitate vendors/ suppliers to install renewable energy projects/ solutions for selling electricity or leasing/ renting out/ selling on deferred payment of renewable energy equipment to ultimate owners/users. For the purpose of this Scheme, a vendor/ supplier is the client of a financing bank/DFI who is certified under AEDB's certification regulations. Subsequently, energy sale companies established specifically for undertaking solar & wind based projects to sell electricity to ultimate owners/ users were also allowed to avail financing under this category.
3. In order to streamline features of this category with market dynamics, it has been decided that any Renewable Energy Investment Entity (RE-IE) shall be eligible to avail financing under this category for installation of renewable energy projects/ solutions. The RE-IE shall be any business entity which is established to invest in renewable energy generation through installation of renewable energy projects/ solutions for selling electricity or leasing/ renting out/ selling on deferred payment of renewable energy equipment to ultimate owners/ users. A renewable energy investment entity shall also include vendors/ suppliers of renewable energy equipment.
4. Accordingly, the revised features of Category III of both Conventional and Shariah compliant Schemes are placed as Annexures I and II below. The Annexure-I shall replace Section 9 of SBP Financing Scheme for Renewable Energy (IH&SMEFD Circular No. 10 dated July 26, 2019) while Annexure II shall replace Section 1.6 and Section 2.3.3 of IFRE (IH&SMEFD Circular No. 12 dated August 21, 2019). These Annexures shall also replace and override instructions/ revisions introduced vide IH&SMEFD Circular Letter No. 23 dated July 22, 2020.
5. Other terms and conditions regarding Category III of subject Schemes shall be applicable mutatis mutandis.
6. The terms and conditions regarding Categories I & II shall remain unchanged.

Encl:

Annex-I: Revised Category III of RE Scheme

Annex-II: Revised Category III of IFRE Scheme