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| IH&SMEFD
Circular No. 10 of 2019 |
July
26, 2019 |
The Presidents/ Chief Executives,
All Banks and DFIs
SBP Financing Scheme
for Renewable Energy
Dear Sir/Madam,
Reference may be made to
Revised SBP Financing Scheme for Renewable
Energy launched through IH&SMEFD Circular
No. 03 dated June 20, 2016. The objective
of the Scheme is to lend support in addressing
dual challenge of energy shortage and climate
change through promotion of renewable energy.
The Scheme has expired on June 30, 2019.
2. State Bank has recently
sought feedback of stakeholders on demand
as well as scope and features of the Scheme.
Based on this feedback, the expiry period
of the Scheme has been extended to June
30, 2022. The scope and features of the
Scheme have also been aligned with recommendations
of the stakeholders. The Scheme is now available
under three categories, as given below:
Category I:
Prospective sponsors, desirous of setting
up renewable energy power projects with
a capacity ranging from more than 1 MW and
up-to 50 MW for their own use, selling of
electricity to the national grid (including
distribution companies) or combination of
both.
Category II: Prospective
sponsors, desirous of installing renewable
energy source based projects/ solutions
for generation of electricity up-to 1 MW.
Category III: Vendors and
suppliers certified under AEDB Certification
Regulation 2018 for installation of wind
and solar systems on lease basis or selling
of electricity to ultimate owners/users.
3. The salient features
of financing facility under these categories
are as under:
i. Maximum Loan
Amount:
| Category
I |
| Rs. 06
billion for a single project |
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| Category II |
| Rs. 400
million for a single borrower |
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| Category III |
| Rs. 01
billion for a single vendor / supplier |
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| Category
I |
SBP
Refinance shall be up-to
100% of total financing
(debt) of an eligible RE
project of upto 20 MW and
up-to 50% of financing (debt)
of an eligible RE Project
of more than 20 MW. |
|
| Category II |
| SBP
Refinance shall be up-to 100%
of financing to the eligible
borrowers. |
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| Category III |
| SBP
Refinance shall be up-to 100%
of financing to the eligible
borrowers. |
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iii. Service charges and rates
for end users:
| Scheme Category |
SBP
Service Charges/ Refinance Rate |
Maximum
bank/ DFI’s Spread |
Maximum
End User Rate |
| Category I |
3.00% |
3.00% |
6.00% |
| Category II |
2.00% |
4.00% |
6.00% |
| Category III |
3.00% |
3.00% |
6.00% |
| Category
I |
Maximum
twelve (12) years, including
maximum grace period of two
(02) years. |
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| Category II |
| Maximum
ten (10) years, including maximum
grace period of three (03) months.
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| Category III |
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v. Repayment of Financing:
| Category
I |
• Principal repayable
in quarterly or half yearly
installments
• Mark-up repayable
on quarterly basis.
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| Category II |
• Principal repayable
in monthly, quarterly or half
yearly installments.
•
Mark-up repayable on monthly
or quarterly basis.
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| Category III |
• Principal repayable
in monthly, quarterly or half
yearly installments.
•
Mark-up repayable on monthly
or quarterly basis.
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4. Details of the Scheme and
its documents are attached herewith at
Annexure I and II respectively.
5. State Bank will allocate
annual limits (financial year basis) to
the banks/ DFIs under the Scheme against
their applications submitted latest by
15th May each year. The application for
sanction of limit shall accompany a duly
filled-in requisition form (attached herewith
as Annexure III) detailing pipeline of
projects for which financing is expected
to be disbursed during the year. For the
financial year 2019-20, requests for sanction
of limits may be submitted within 30 days
from the date of issuance of this Circular.
Encl:
- Annex-I:
SBP Financing Scheme for Renewable Energy
- Annex-II:
Documents for SBP Financing Scheme for
Renewable Energy
- Annex-III:
Requisition form for sanction of limit
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Yours sincerely,
Sd/-
(Ghulam Muhammad)
Director
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