EESL signs €200 million loan deal with Germany’s KfW Development Bank
Energy Efficiency Services Ltd will use the funds for the planned expansion across all its portfolios of energy efficient products and services
New Delhi: State-owned Energy Efficiency Services Ltd. (EESL), which is on an expansion mode, has signed a €200 million loan deal with Germany’s KfW Development Bank, EESL managing director Saurabh Kumar said on Friday.
EESL, a joint venture of state-run Rural Electrification Corp., Power Finance Corp., NTPC Ltd. and Powergrid Corp. will use the funds for the planned expansion across all its portfolios of energy efficient products and services.
The euro loan priced with a coupon of 1.15% translates to a fully hedged interest cost of 7-7.5%.
“The loan comes with a four year moratorium and a 12-year repayment period,” said Kumar.
EESL is currently on a massive drive to promote use of energy efficient LED bulbs, solar pumps and energy efficient street lamps and air-conditioners. The company is expected to announce its entry into energy efficient air-conditioners shortly.
EESL seeks to unlock the market for energy efficiency in the country estimated at Rs74,000 crores.
An email sent to KfW on Friday evening remained unanswered at the time of publishing. The development bank is bullish on investing in clean energy and energy efficiency in the country.
“KfW is supporting the Indian government in finding ways to pursue socially responsible yet climate-friendly growth. The support entails, for instance, loans to promote renewable energies and to finance credit for small and medium-sized enterprises, or investments in environmentally friendly municipal infrastructure projects,” KfW said on its website.