PNB gets US$500 Million ADB Loan for Finance to Solar Rooftop Projects

Punjab National Bank (PNB) and Asian Development Bank (ADB) have signed Loan Agreement for $100 million and loan is guaranteed by the Government of India. Loan Agreement was signed by Shri H.K. Parikh, General Manager, on behalf of Punjab National Bank and Shri Kenichi Yokoyama, ADB Country Director. Guarantee Agreement for this loan has been signed by Shri Raj Kumar, Joint Secretary (M.I.), Department of Economic Affairs, Ministry of Finance, Govt. of India. This is the first tranche of the $500 million multitranche finance facility approved by the ADB. Punjab National Bank will use the ADB funds to make further loans to various developers and end users to install rooftop solar systems on Industrial and Commercial buildings to make them availability of cheaper solar energy at concessional interest rates.

India’s solar rooftop market is expanding fast with an estimated total capacity potential of 124 gig watt (GW). Financing of Roof top solar projects is suitably aligned with the goals of Government of India to increase the country’s solar rooftop capacity by 40 GW by 2022.