SBI has signed Line of credit with EIB for climate action project

The largest public sector lender of the nation SBI, has signed a Line of Credit worth 200 million euro with the European Investment Bank to support climate action projects in the country. The agreement was signed on December 21 at the bank's IFSC Gift City Branch in Ahmedabad.

The loan document will become operational, subject to necessary approvals. Earlier this month, SBI signed a 70 million euro[ about Rs 630 crore] LoC with German Development Bank KfW for promoting solar projects in the country.

EUROPEAN INVESTMENT BANK:

It is the European Union's investment bank and is owned by the 27 Member states. It is the largest multilateral financial institution in the world. The EIB finances and invests both through equity and debt solutions companies and projects that achieve the policy aims of the European Union through loans, equity and guarantees.

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The prime focus of EIB are areas of climate, environment, small and medium-sized enterprises [SMEs], development, cohesion and infrastructure. It is one of the biggest financiers of green finance in the world.

Earlier in July 2023, EIB plans to invest about 1 billion euros in India's renewable energy sector.

So far EIB has made about 4 billion euro investment in India. Of this, about 3 billion euro is in the infrastructure sector, particularly in public transport infrastructure like metro rail projects. EIB has funded metro rail projects in Agra, Lucknow, Kanpur, Bengaluru, Bhopal and Pune.

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