Karachi June 17 2022: SBP Financing Scheme for Renewable Energy and Islamic Financing Facility for Renewable Energy has been extended for two (02) years i.e. up-to June 30, 2024, according to the circular issued by the State Bank of Pakistan (SBP).
Earlier, this concessionary scheme of financing for Renewables at a maximum rate of 6% is going to expire on 30th June 2022. This facility is also available under Islamic Mode of Financing by the State Bank of Pakistan.
SBP is providing facility of Rs 6 billion for 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. 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. The tenor of loan will be for a maximum twelve (12) years, including maximum grace period of two (02) years. Under this scheme, Principal repayable in quarterly or half yearly installments and Mark-up repayable on quarterly basis.
SBP will provide loan of Rs. 400 million for a single borrower to Prospective sponsors, desirous of installing renewable energy source based projects/ solutions for generation of electricity up-to 1 MW. SBP Refinance shall be up-to 100% of financing to the eligible borrowers. The loan will be for a maximum ten (10) years, including maximum grace period of three (03) months while payment of loan Principal repayable in monthly, quarterly or half yearly installments and mark-up repayable on monthly or quarterly basis.
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 can avail financing of Rs. 01 billion for a single vendor / supplier. SBP Refinance shall be up-to 100% of financing to the eligible borrowers for a period of 10 years. Principal repayable in monthly, quarterly or half yearly installments and mark-up repayable on monthly or quarterly basis.