GCPF supports Green Lending Initiative of Pan Asia Banking Corporation
Pan Asia Banking Corporation (PABC) today signed an agreement with the Global Climate Partnership Fund (GCPF) for a SLR 2.56 billion ($20 million) seven year facility dedicated to renewable energy and energy efficiency projects. Speaking on the occasion Claude Peiris, CEO of PABC, highlighted that the GCPF facility seamlessly fits with the business strategy of PABC. This facility will enable PABC to address the demand for green lending products from the bank’s client base. PABC has already financed mini-hydro power projects and is encouraged by the performance of its existing loans for renewable energy and energy efficiency.
Monika Beck, Chairperson of the Board of Directors of GCPF, welcomed the partnership with Pan Asia Bank. She noted that this is the first partnership for GCPF in South Asia and adds to its global efforts for reducing carbon foot print.
In addition to the loan, PABC will also benefit from a comprehensive technical support program, which will enable PABC to systematically build its green lending portfolio of economically viable and climate friendly projects. The technical support to be provided by GCPF will assist PABC to apply international best practices while it builds a diverse portfolio of renewable energy and energy efficiency projects. Technical support will also enhance environmentally-oriented thinking into other lending products as well.
Sri Lanka's investments needs in the renewable energy and energy efficiency space are significant and growing at all levels - corporate, SME and individuals/households. In this context, Mr. Peiris cited potential for investments by Pan Asia Bank in solar and wind power, energy efficiency equipment and processes for tea industry, and efficient refrigeration among others. Mr. Peiris added that green lending will also enhance corporate social responsibility efforts of PABC.
PABC is a Sri Lanka based commercial bank serving both commercial and retail clients with a strongly growing presence throughout the country. It is listed on the Colombo stock exchange. For more information, please click here.
GCPF is a Luxembourg based investment fund which provides financing for sustainable energy projects. The German Federal Environment Ministry, KfW, the Ministry of Foreign Affairs of Denmark and IFC are among the investors in GCPF. Deutsche Bank AG is the investment manager for GCPF.