SIDBI partners Yes Bank for loan guarantee under WB scheme

In Banking and Finance
July 11, 2016

A memorandum of understanding (MOU)was signed between SIDBI and YES BANK under the partial risk sharing facility (PRSF) for financing energy efficiency projects programme sponsored by the World Bank. As per the terms of the agreement, Sidbi will guarantee 75% of loans of up to Rs 15 crore extended to the energy efficiency projects.

The Small Industries Development Bank of India (Sidbi) is the project execution agency whereas Yes Bank claims to be the first Indian lender to be empanelled for the programme. YES Bank retail assets president Sumit Gupta said the financing of energy efficiency projects is still at a nascent stage in India.

AIM of this partnership

The aim of the project is to transform the energy efficiency (EE) market in India by promoting increased level of EE investments, particularly through energy service performance contracting (ESPC) delivered through Energy Service Companies (ESCOs).
Sidbi expects to provide credit guarantee to more than 500 projects and mobilise financing of up to $127 million through the tie-up.
A MOUwas signed between Sidbi and Yes Bank under the Partial Risk Sharing Facility (PRSF) for financing energy efficiency projects programme sponsored by the World Bank

About SIDBI

Small Industries Development Bank of India is an independent financial institution.
Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, acts as the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.
The aim of this institute To facilitate and strengthen credit flow to MSMEs and address both financial and developmental gaps in the MSME eco-system.
In order to promote and develop the MSME sector, SIDBI adopts a ‘Credit+’ approach, under which, besides credit, SIDBI supports enterprise development, skill upgradation, marketing support, cluster development, technology modernisation, etc.
SIDBI has also floated several other entities for related activities.
Credit Guarantee Fund Trust for Micro and Small Enterprises :-provides guarantees to banks for collateral-free loans extended to SME.
SIDBI Venture Capital Ltd.is a venture capital company focussed at SME.
SME Rating Agency of India (SMERA )-to provide composite ratings to SME.
Another entity founded by SIDBI is ISARC – India SME Asset Reconstruction Company in 2009, as specialized entities for NPA resolution for SME.
SIDBI CEO: Dr. Kshatrapati Shivaji

About World Bank

The World Bank is an international financial institution that provides loans to developing countries for capital programs.
The World Bank is a component of the World Bank Group, which is part of the United Nations system.

World Bank Group

The World Bank is different from the World Bank Group, an extended family of five international organizations: