The Multilateral Investment Guarantee Agency (MIGA), which houses the World Bank Group Guarantee Platform, has issued a guarantee to Citibank N.A. for its non-shareholder loan to the State Bank of India (SBI).
The guarantee will protect Citi against the risk of non-honoring of financial obligations by a state-owned enterprise and will support the next phase of a proven clean energy initiative. The guarantee of USD 197.67 million for five years will enable SBI to refinance the remaining principal of a USD 500 million World Bank loan to SBI in 2016 for grid-connected rooftop solar photovoltaic systems. These installations provide clean energy and reduce greenhouse gas emissions by displacing more expensive and carbon-intensive thermal generation. The loan funds a national program to deliver the GRPV systems to commercial and industrial customers across India.