45916-024: Industrial Energy Efficiency Finance Program (Prime Bank Limited)

Project Data Sheet (PDS): Overview


Description

ADB s proposed assistance to the finance program will consist of two components: (i) a $30 million loan facility to be disbursed to participating financial institutions (IIDFC and other participating financial institutions to be selected) for them to onlend to eligible industrial energy efficiency projects, and (ii) a $1.5 million TA to identify bankable energy efficiency projects in target industries other than brick making. ADB will lend $30 million in aggregate to 2 4 participating financial institutions. Initially, ADB will provide a $6 million loan to IIDFC, representing 4% of IIDFC s asset base and 36% of its net worth as of June 2011. The proposed loan will have a 7-year door-to-door tenor with a 2-year drawdown and interest-only period. The loan will be disbursed to IIDFC in at least two tranches. The first tranche will fund mostly brick kiln projects, and the second tranche will fund projects across all targeted industries once bankable projects have been identified through the TA. ADB will lend up to $24 million in aggregate on similar terms to 1 3 other participating financial institutions selected. While ADB s loan facility is proposed to be limited to $30 million, the demand for energy efficiency funding arising from the projects identified through the finance program may be higher. Participating financial institutions and other local or international financial institutions may provide cofinancing to the identified projects. Hence, it is expected that the finance program could result in up to $100 million of industrial energy efficiency investments (assuming $30 million in cofinancing and $40 million in equity contribution from the industrial sponsors). Read More

Country Bangladesh
Borrower/Equity Investment Name
Project Number 45916-024
Project Type or Modality of Assistance PS
Financing Private sector (Nonsovereign)
Status Approved
Approval Number 7378
Approval Date 14 Dec 2011
Geographical Location Bangladesh
Sector / Subsector Classification Not yet classified
/ For Classification

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Project Data Sheets (PDS)

Responsible ADB Officer
Martin Lemoine
Request for information

Responsible ADB Department
Private Sector Operations Department

Responsible ADB Divisions
Private Sector Financial Institutions Division

Last PDS Update
25 Mar 2013

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