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PAKISTAN HOSIERY MANUFACTURERS & EXPORTERS ASSOCIATION
PHMA House, 37-H, Block-6, P.E.C.H.S, Karachi. Tel: 0092-21-34522769, 34522685, 34544765
Fax: 0092-21-34543774, E-mail: info@phmaonline.com   

Ref. No. PHMA/Cir-011/2022
Dated: 01st March, 2022

To: All Members of the Association (Southern Zone)

"SBP Financing Scheme for Renewable Energy "

Pakistan’s economy is facing the dual challenge of energy shortage and climate change. The inadequate supply of energy has severely impacted the growth of industries/businesses and the welfare of public in general. In order to support in overcoming challenges, SBP is promoting green banking i.e. use of indigenous resources especially renewable energy in order to ensure sustainable banking and development The objective of the Scheme is to lend support in addressing dual challenge of energy shortage and climate change through promotion of renewable energy. The scheme will provide concessionary financing for large renewable energy power projects as well as for small scale renewable energy solutions. The said scheme also facilitates installation of renewable energy based solutions/ projects under net-metering system introduced by National Electric Power Regulatory Authority (NEPRA)

Relevant Circular of State Bank of Pakistan IH&SMEFD Circular No. 10 of 2019 date July 26,2019 is attached for your ready reference . https://www.sbp.org.pk/smefd/circulars/2019/C10.htm  (Circular also attached)

Salient Features of the scheme are as under:

The salient features of financing facility under these categories are as under:

i. Maximum Loan Amount:

Category I

Rs. 06 billion for a single project

Category II

Rs. 400 million for a single borrower

Category III

Rs. 01 billion for a single vendor / supplier

ii. SBP Refinance:

Category I

SBP Refinance shall be up-to 100% of total financing (debt) of an eligible RE project of upto 20 MW and up-to 50% of financing (debt) of an eligible RE Project of more than 20 MW.

Category II

SBP Refinance shall be up-to 100% of financing to the eligible borrowers.

Category III

SBP Refinance shall be up-to 100% of financing to the eligible borrowers.


iii. Service charges and rates for end users:

Scheme Category

SBP Service Charges/ Refinance Rate

Maximum bank/ DFI’s Spread

Maximum End User Rate

Category I

3.00%

3.00%

6.00%

Category II

2.00%

4.00%

6.00%

Category III

3.00%

3.00%

6.00%


iv. Tenor of Financing:

Category I

Maximum twelve (12) years, including maximum grace period of two (02) years.

Category II

Maximum ten (10) years, including maximum grace period of three (03) months.

Category III

Maximum ten (10) years


v. Repayment of Financing:

Category I


• Principal repayable in quarterly or half yearly installments
• Mark-up repayable on quarterly basis.

Category II


• Principal repayable in monthly, quarterly or half yearly installments.
• Mark-up repayable on monthly or quarterly basis.

Category III


• Principal repayable in monthly, quarterly or half yearly installments.
• Mark-up repayable on monthly or quarterly basis.

SBP's Financing Scheme for Renewable Energy and its information is forwarded to Members to avail the concessionary financing for their renewable energy projects.

Best regards

 

 

MUHAMMAD JAWED BILWANI             ABDUL REHMAN       ABDUL KADIR BILWANI         FAISAL ARSHAD SHEIKH   

Chief Coordinator                                          Chairman SZ                 Sr. Vice Chairman SZ                    Vice Chairman SZ
 
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