The Asian Infrastructure Investment Bank (AIIB) has committed up to INR7.3 billion (about USD88 million) to the ENGIE Solar Power Project to support India's renewable energy expansion.
Cofinanced with the Asian Development Bank (ADB), the project is expected to support the development, construction, operation and maintenance of a 400MW solar PV plant in Gujarat, India.
AIIB and ADB are jointly providing up to INR14.6 billion (about USD175.9 million) equivalent in the form of a project finance senior debt facility in local currency. According to its strategic plan, ENGIE aims to invest EUR22-25 billion between 2023 and 2025 in renewable energy and low-carbon energy solutions. The project will contribute toward diversifying ENGIE's sources of long-term funding and mobilizing other providers of capital.
The project also contributes to the Government of India's priorities of promoting clean energy development. India aims to reach 500GW of non-fossil fuel generation installed capacity by 2030.
"AIIB is committed to supporting our Members' green transition and development," said Rajat Misra, AIIB Acting Vice President for Investment Clients Region 1 and Financial Institutions and Funds, Global. "This project fully aligns with AIIB's Energy Sector Strategy and mission of Financing Infrastructure for Tomorrow. It will further strengthen the development of renewable energy infrastructure and reduce the carbon intensity of the energy supply in our Members."
"In collaboration with ADB and AIIB, we're bringing a landmark 400MW solar project to Surendranagar, Gujarat, marking a significant stride in India's clean energy journey," said ENGIE India CEO and Country Manager Amit Jain. "This venture not only aligns with our green power goals but also catalyzes local job creation, reinforcing our pledge to India's nonfossil fuel future, firming our commitment to India's energy transition."
India is a Founding Member of AIIB and the Bank's largest borrower. As of August 14, AIIB has approved 48 projects in India amounting to USD10.45 billion.
About AIIB
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is Financing Infrastructure for Tomorrow in Asia and beyond - infrastructure with sustainability at its core. We began operations in Beijing in 2016 and have since grown to 109 approved members worldwide. We are capitalized at USD100 billion and AAA-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients' needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.
