June 18, 2022: State Bank of Pakistan (SBP) Friday extended the validity period of the renewable energy financing scheme and Islamic financing facility for two years, up to June 30, 2024.
According to a circular issued by SBP’s Infrastructure, Housing and SME Finance Department, Revised SBP Financing Scheme for Renewable Energy was launched in June 2016 to lend support in addressing the dual challenge of energy shortage and climate change through the promotion of renewable energy.
The central bank, later on, based on stakeholders’ feedback, extended the expiry period of the scheme to June 30, 2022.
The Mudarabah-based Islamic financing facility for renewable energy (IFRE) was introduced in February 2019 for the Islamic Banking Institutions (IBIs) and DFIs.
The SBP financing scheme and Islamic financing facility for renewable energy were available to prospective sponsors, vendors and suppliers in three different categories encompassing renewable energy projects with a capacity of below 1 megawatt and more than 1 MW and up to 50 MW.
Loans amounting from Rs 400 million to 6 billion could have been availed depending on the category under the financing facility with up to 100% refinance by SBP for a period of 10 to 12 year.