Pan Asia Bank secures $ 33 m funding for green lending

Wednesday, 11 October 2017 00:00 - - {{hitsCtrl.values.hits}}

Pan Asia Banking Corporation (PABC) announced that it has completed a landmark $ 33 million funding arrangement with the Global Climate Partnership Fund, an investment fund which provides financing for a sustainable energy project.

The bank said $ 20 million has been already availed and the balance $ 13 million will be availed on or before 31 December 2017. The loan is a floating rate facility, with interest re-priced semi-annually with a tenor of seven years.

Funding will be utilised to grow the green lending business of PABC.

The German Federal Environment Ministry, KFW, the Ministry of Foreign Affairs of Denmark and the IFC are among the top investors of GCPF.

It said the external borrowing lines will not be convertible into any form of equity instrument and the lenders of the proposed funds will not enjoy any priority over the other debenture holders of the bank. The lender will also not have any special rights over the debenture holders of the bank in any manner detrimental to the holders of such security.