The Presidents/ Chief Executives,
All Islamic Banks and Banks / DFIs having
Islamic banking branches/operations
Dear Sir/ Madam,
Islamic Financing
Facility for Renewable Energy (IFRE)
Reference
may be made to IH&SMEFD Circular No. 01
dated February 22, 2019 introducing Mudarabah
based ‘Islamic Financing Facility for
Renewable Energy (IFRE)’ for Islamic
Banking Institutions (IBIs) and DFIs having
authorized Islamic financing operations.
2. Now an updated Islamic
Financing Facility for Renewable Energy (IFRE)
is being issued. This updated IFRE shall supersede
and replace the Facility issued vide above-mentioned
Circular.
3. The financing under IFRE
is now available to the customers 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 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.
4. SBP shall make Mudarabah
investment in general pool of Participating
Islamic Financial Institutions (PIFIs) under
IFRE. Mudarabah investment of SBP in IFRE
shall be available upto maximum financing
limit of eligible projects as prescribed under
each category of the Scheme. IFRE shall be
effective immediately and financing shall
be available for projects achieving financial
close under Category I and new sanctions under
Category II or III after date of issuance
of this Circular and up-to June 30, 2022 only.
5. The IBIs and DFIs having
authorized Islamic financing operations under
permission of SBP may submit their requests
for the status of Participating Islamic Financial
Institution (PIFI) keeping in view the criteria
given in the facility. They may also apply
for allocation / assignment of limit for the
current financial year. These requests may
be submitted latest by 15th May each year.
For the financial year 2019-20, these requests
may be submitted within 30 days from the date
of issuance of this Circular.
The IBIs and DFIs having
authorized Islamic financing operations under
permission of SBP which have already submitted
their requests for status of PIFI and allocation
of limit under earlier version, issued vide
IH&SMEFD Circular No. 01 dated February
22, 2019, need not resubmit their requests
unless they desire to revise amount of their
requested limits. However, they will be required
to submit their updated operations/process
manual aligned with this Scheme.
6. Details of the Facility,
its Shariah structure and documents are provided
in the Annexures.
Encl:
Annex-I: Islamic
Financing Facility for Renewable Energy
Annex-II: Documents
for Islamic Financing Facility for Renewable
Energy
Annex-III: Requisition
form for sanction of Limit