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World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

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Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

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Explore different types of political risk insurance guarantees provided to investors and lenders.

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Press Release

MIGA Supports Innovative Solar Rooftop Systems in India

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WASHINGTON, June 12, 2024 – The Multilateral Investment Guarantee Agency of the World Bank Group (MIGA) has issued a guarantee of $317.5 million to Citi, Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB), and Standard Chartered Bank for their loan to the State Bank of India (SBI), one of India’s premier state-owned banks. The guarantee will protect against the risk of non-honoring of financial obligations by a state-owned enterprise for up to 10 years. 

The project showcases an “originate to refinance” model leveraging different parts of the World Bank Group. The World Bank supported SBI in a nascent sector, and MIGA subsequently brought in commercial financing once the World Bank loan operation had helped the project reach a certain level of maturity. This approach was recommended by the Private Sector Investment Lab, launched by the World Bank Group in June 2023 to identify barriers and find potential solutions to private investment in developing countries. The project also responds to calls from the G20 and others for multilateral development banks and MIGA to collaborate on transferring portfolio risk from MDB balance sheets through MIGA’s insurance products and reinsurance capacity. 

This is MIGA’s second major operation in India this year, following a $132 million guarantee to support the Dedicated Freight Corridor Corporation of India Limited in accessing international finance for the construction of an 1,840-kilometer-long electric high-speed freight-only railway system.  

This collaboration between MIGA and SBI is aimed at refinancing a $500 million loan provided by the World Bank to SBI in 2016 for operational Grid-connected Rooftop Solar Photovoltaic (GRPV) systems. These photovoltaic installations provide clean energy and reduce greenhouse gas emissions by displacing more expensive and carbon-intensive thermal generation. The IBRD loan funds a national program to deliver the GRPV systems to commercial and industrial customers across India.  

"MIGA’s guarantee will support SBI in expanding its renewable energy portfolio in India," said Hiroshi Matano, MIGA Executive Vice President. "As India’s economy continues to grow, we are excited to deepen our engagement in the country. By supporting the development of clean energy projects, we are helping India achieve its climate targets and transition to a more sustainable energy future.” 

SBI launched the GRPV project in India in 2016, leveraging World Bank financing and technical assistance to demonstrate the commercial viability and business model for the commercial and industrial segments of the solar rooftop market. The World Bank program enabled SBI to partner with MIGA, attracting international commercial lenders and private finance directly to the GRPV program. This financing is a part of India’s broader program to achieve its climate targets with renewables as the cornerstone. 

“MIGA-guaranteed refinancing of IBRD loan for operational GRPV systems is a unique deal duly empowering the transformative environmental upgrades in the domestic energy space. This deal has opened a new vista of collaboration in funding, wherein international commercial lenders with MIGA guarantee and banks like SBI are coming together to pioneer the journey towards a greener and better tomorrow,” said Challa Sreenivasulu Setty, Managing Director of SBI. 

This financing will help SBI reduce its borrowing costs and diversify its sources of borrowing. MIGA’s guarantee frees up headroom for additional World Bank lending to the government of India by transferring the loan to commercial lenders’ balance sheets.

"This key transaction contributes to Citi’s $1 trillion Sustainable Finance Goal to advance solutions that accelerate the transition to a sustainable, low-carbon economy and address climate change solutions around the world. The transaction will encourage a range of international investors to support India to fulfil its ambitious pledge of sourcing 50 percent of energy demand from renewables by 2030," said Richard Hodder, Global Head of Export and Agency Finance for Citi. 

 “This transaction represents a significant milestone for Crédit Agricole Corporate and Investment Bank in accompanying India’s ambitions to increase the share of power from renewable sources. Through this loan to the State Bank of India supported by a MIGA guarantee, it reaffirms the Bank's mission in advancing sustainable finance and fostering the transition to a low-carbon economy aligned with our clients’ climate strategies,” said André Gazal, Global Head of Export Finance for Crédit Agricole Corporate and Investment Bank. 

“This transaction marks our first MIGA supported financing in India which further cements our global partnership with MIGA. We are pleased to collaborate with SBI on their maiden MIGA solution and supporting India’s renewable energy targets,” said Prasad Hegde, Managing Director, Head, Project & Export Finance, South Asia for Standard Chartered Bank. 

 

About SBI 

State Bank of India is the largest and one of the oldest banks in India. SBI serves over 480 million customers domestically through its vast network of over 22,405 retail bank branches. It has a global footprint of 235 offices in 29 countries. SBI offers myriad products and services, including corporate finance, project and structured finance, loan syndication, working capital solutions, and trade finance. It was established in 1921 as the Imperial Bank of India and later constituted the State Bank of India in 1951 by an Act of the Indian Parliament. 

About Citi 

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services. 

About Crédit Agricole Corporate and Investment Bank  

Crédit Agricole CIB is the corporate and investment banking arm of Crédit Agricole Group, the 10th largest banking group worldwide in terms of balance sheet size (The Banker, July 2023). More than 8,900 employees across Europe, the Americas, Asia-Pacific, the Middle East and Africa support the Bank's clients, meeting their financial needs throughout the world. Crédit Agricole CIB offers its large corporate and institutional clients a range of products and services in capital markets activities, investment banking, structured finance, commercial banking and international trade. The Bank is committed to sustainable development and is a pioneer in climate finance including green bonds and is currently a market leader in this segment with a complete offer for all its clients. 

About Standard Chartered Bank  

Standard Chartered Bank is a leading international banking group, with a presence in 53 of the world’s most dynamic markets and serving clients in a further 64. Its purpose is to drive commerce and prosperity through its unique diversity, and its heritage and values are expressed in brand promise, here for good. Standard Chartered PLC is listed on the London and Hong Kong Stock Exchange.  

About MIGA  

MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping to mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance, and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued over US$76 billion in guarantees across 123 developing countries, supporting over 1,000 projects. Over the past decade, MIGA’s guarantees have generated more than 156,000 jobs in developing countries.  

 

For more information, please visit: https://www.miga.org   

Stay updated and follow us at https://twitter.com/MIGA and https://www.linkedin.com/company/wb-miga   

 

Contact: 

In Washington:  Elizabeth Howton, (202) 458-5922 or ehowton@worldbankgroup.org 

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