SBI signs $277 mn agreement for Housing Programme

   State Bank of India (SBI) has signed a loan Agreement with KfW, the German development bank, for $277 mn (about Rs.1,958 Crores) for establishing an Energy-Efficient Housing Program in India.
   The Program will be a part of the Indo-German Development Co-operation, which is guided by the 2030 Agenda for Sustainable Development.
   Under the Programme, both builders and home buyers will be financed for developing and purchasing energy-efficient residential projects that achieve at least 25% energy savings in comparison to standard reference buildings.
   In addition to the $277 mn loan facility, KfW will also extend a grant of 1.5 mn euros to SBI as a technical assistance package. The technical assistance funds will be used for supporting SBI in the preparation, implementation and monitoring of the program.
    Further, an investment grant of 10 million euros has also been provided for incentivising builders to develop housing projects that achieve significantly higher levels of energy savings vis-à-vis standard reference buildings (i.e. at least 40% savings).
The arrangement of the loan and the grant facilities was facilitated by SBI’s investment banking subsidiary, SBI Capital Markets Limited.