The World Bank Group’s guarantee arm gave a $197. 67 million guarantee on Tuesday for India’s ambitious rooftop solar expansion plan.

The World Bank’s $500 million loan to the State Bank of India for grid-connected solar systems that serve commercial and industrial clients is supported by the five-year funding.

According to a press statement, the guarantee to Citibank N. A. for its non-shareholder loan to SBI was provided by the Multilateral Investment Guarantee Agency (MIGA), which is home to the World Bank Group Guarantee Platform. By replacing more expensive and carbon-intensive thermal production, the rooftop solar installations provide clean energy and lower greenhouse gas emissions.

The loan supports a national initiative that provides grid-connected rooftop solar photovoltaic (GRPV) systems to commercial and industrial clients throughout India. Tsutomu Yamamoto, MIGA Managing Director, stated that MIGA’s guarantee will support SBI’s expanding portfolio of renewable energy in India and help India achieve its climate targets.

The rooftop solar installations provide clean energy and reduce greenhouse gas emissions by displacing more expensive and carbon-intensive thermal generation.The loan funds a national program delivering grid-connected rooftop solar photovoltaic (GRPV) systems to commercial and industrial customers across India.​

MIGA’s guarantee will support SBI’s growing portfolio of renewable energy in India and contribute to India’s climate goals, said Tsutomu Yamamoto, MIGA Managing Director.

Additionally, the partnership between MIGA and the IBRD on the initiative is further evidence of how the One World Bank Group is working together to promote private capital mobilization. India has set out ambitious goals for a shift to clean energy.

To get net zero by 2070, annual investment requirements are predicted to be between $160 and $300 billion. As one of the biggest banks and financial services companies in the nation, SBI is required to use at least 7. 5% of its domestic gross advances for “green” finance.

By using World Bank funding and technological help to demonstrate the commercial viability of rooftop solar for the commercial and industrial sectors, SBI launched the rooftop solar project in 2016. SBI was able to get foreign commercial lenders and private funding via the World Bank program.

According to the most recent IBRD Implementation Report, the program resulted in 1,004 MW of GRPV installations.

Citibank served as the only lender, facility agent, mandated lead arranger, and MIGA coordinator for the loan. The latest IBRD Implementation Report confirms that 1,004 MW of GRPV installations were achieved under the program.

​Citibank acted as sole lender, mandated lead arranger, facility agent, and MIGA coordinator for the financing.The transaction is based on a similar rooftop solar refinancing initiative that Citi, MIGA, and SBI worked together on in 2024.

“This historic transaction demonstrates Citi’s dedication to promoting sustainable development and aiding India’s shift toward a greener economy,” said Stephanie von Friedeburg, Global Head of Citi’s Public Sector Group.

This initiative, our second collaboration with MIGA and SBI in the past two years, continues to promote India’s ambitious rooftop solar program, showcasing the potential of public-private partnerships to provide effective clean energy solutions and advance global climate goals. According to SBI Managing Director Rana Ashutosh Kumar Singh, the refinancing was a “pioneering transaction. ”

“This unique alliance between Citi, MIGA, and SBI will make a significant contribution to lowering the carbon footprint of the country, in line with India’s Net Zero targets and highlighting SBI’s unwavering dedication to sustainable development. ”

The finance will assist SBI in lowering borrowing costs and diversifying its sources of capital.

By transferring the loan to the balance sheets of commercial lenders, the guarantee, according to MIGA, also makes room for more World Bank lending to the Indian government. SBI serves more than 480 million clients through its 22,405+ retail locations throughout India and has 235 branches in 29 nations.

It was founded as the Imperial Bank of India in 1921 and established by an Act of Parliament in 1951 as the State Bank of India. It was established in 1921 as the Imperial Bank of India and, in 1951, was constituted as the State Bank of India by an Act of Parliament.

MIGA is a member of the World Bank Group that works to attract private investment into emerging nations by offering credit support and political risk insurance.

The World Bank Group reorganized its guarantee offerings in 2024 under MIGA with the goal of increasing yearly guarantee issuance to $20 billion by 2030.