The International Finance Corporation (IFC), a World Bank Group member, will invest $100 million to boost financing for renewable energy projects in Sri Lanka.
The IFC will collaborate with Sri Lanka’s Commercial Bank of Ceylon on a $100 million financing structure to help the bank increase lending for renewable energy and energy efficiency projects in the country. This is IFC’s largest financing for its own-account in Sri Lanka, according to an IFC release.
The funds will be provided to the Commercial Bank of Ceylon over a seven-year period. The IFC expects the fund will help reduce greenhouse gasses, promote energy efficiency, and support the expansion of conventional and non-conventional renewable energy projects in Sri Lanka.
“IFC’s multi-faceted partnership has been instrumental as we develop a green-finance business to make financing more available to our clients that want to mitigate climate-change risks and contribute to a cleaner, more sustainable environment,” stated Mr. Jegan Durairatnam, CEO Commercial Bank of Ceylon.
“As Sri Lanka’s financial sector comes together to develop a sustainable finance roadmap for the sector, IFC is keen to engage with banks that support businesses that are greener, climate friendly, and socially inclusive,” commented Ariane Di Iorio, IFC’s Regional Industry Manager.
IFC is one of the largest investors in the renewable energy sector in the region.
According to Mercom’s Funding and M&A Tracker, in 2017, in India, IFC invested $103 million in L&T Infrastructure Finance Company, $125 million in Hero Future Energies, and Fotowatio Renewable Ventures (FRV) raised $29 million in non-convertible debentures (NCDs) from the IFC to fund 100 MW of solar projects.
The Ceylon Electricity Board (CEB) also recently tendered a 10 MW solar project to be developed in Vavunathivu.