Pan Asia Bank raises $ 20 m to fund sustainable energy projects
Monday, 30 September 2013 01:09
Pan Asia Bank has entered into an agreement with the Global Climate Partnership Fund (GCPF) to raise US$ 20 million through a seven-year senior unsecured loan.
GCPF is an investment fund which provides financing for sustainable energy projects. The German Federal Environment Ministry, KfW, the Ministry of Foreign Affairs of Denmark and IFC are among the investors in GCPF. Deutsche Bank AG is the investment manager for GCPF.
The funds raised would be utilised to finance renewable energy and energy efficiency projects which is a sector of immense importance that would support the post conflict growth in Sri Lanka. Under the agreement with GCPF, in addition to the loan Pan Asia Bank will also benefit from a comprehensive technical support program, which will enable the bank to systematically build its green lending portfolio of economically viable and climate friendly projects.
Securing this loan marks a milestone in Sri Lankan banking arena as it is the first time a bank in South Asia has been able to source funds from this reputed institution for a long term tenor as seven years. Furthermore, granting of this loan is also a strong indicator of the confidence and trust GCPF has of Pan Asia Bank and its growth prospects, especially given the attractive rate at which this loan has been offered.
It is also a noteworthy achievement not only for Pan Asia Bank, but for the whole Sri Lankan economy, as these funds have been granted in an era where the global tendency has been for funds to flow from East to West. Hence, it is a testament to the confidence and optimism of the Western world in the post-war economic revival potential in Sri Lanka.
Pan Asia Bank expects to channel these funds to finance Green economic activities such a renewable energy and energy saving projects which is also in line with its CSR vision. The bank is confident that this funding will create a perfect opportunity to generate long-term sustainable economic benefits to uplift the living standards of people by creating cost effective energy for businesses and employment, while paving the way to be more responsible towards preserving our environment.
In addition to being able to contribute positively towards arresting global warming, this initiative will also result in many strategic economic benefits to the country as development of renewable energy sources such as solar energy, wind power and biomass, etc., would reduce Sri Lanka’s vulnerability to global oil price volatilities.
With a view of passing the benefits of this funding to the customers in a meaningful manner, the bank expects to introduce special attractive retail financing schemes such as ‘green leases’ for import of hybrid vehicles and loan schemes to purchase energy saving consumer products such as refrigerators, air conditioners, solar electricity generating installations, etc. Additionally, the funds would also be utilised to finance large scale wind power and mini hydro projects as well.
Commenting on this opportunity Claude Peiris, Director/CEO of Pan Asia Bank, highlighted that the GCPF facility seamlessly fits with the business strategy of Pan Asia Bank and this facility will enable the bank to address the demand for green lending products from the bank’s client base.
The bank requests prospective clients who are interested in availing funding for the renewable and energy efficiency projects to visit any of the bank branches or call the hotline (011) 4667222.