The Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group Guarantee Platform, has issued a $197.67 million guarantee to Citibank N.A. for its non-shareholder loan to State Bank of India (SBI).
The five-year guarantee protects Citi against the risk of non-honoring of financial obligations by a state-owned enterprise and supports the refinancing of rooftop solar investments across India.
Supporting Grid-Connected Rooftop Solar
The transaction enables SBI to refinance the remaining principal of a $500 million World Bank loan extended in 2016 to scale Grid-connected Rooftop Solar Photovoltaic (GRPV) systems. The program has financed rooftop solar installations for commercial and industrial consumers across India, reducing greenhouse gas emissions by displacing carbon-intensive thermal power.
According to the latest implementation report, the IBRD-supported program achieved installation of 1,004 MW of rooftop solar capacity.
Mobilizing Private Capital for Climate Goals
India has outlined significant clean energy ambitions, with annual climate investment needs estimated between $160 billion and $300 billion to achieve net zero emissions by 2070. SBI, one of India’s largest banking institutions, has been mandated to allocate at least 7.5% of its domestic gross advances toward green financing.
MIGA’s guarantee allows the refinancing of the World Bank exposure through commercial lenders, freeing up lending headroom for further development financing. The structure also helps SBI reduce borrowing costs and diversify funding sources.
Citibank acted as sole lender, mandated lead arranger, facility agent, and MIGA coordinator for the transaction. The deal builds on a similar rooftop solar refinancing collaboration between Citi, MIGA, and SBI in 2024, reinforcing the role of risk-mitigation instruments in attracting international capital to India’s renewable energy sector.
Strengthening Public-Private Collaboration
MIGA Managing Director Tsutomu Yamamoto stated that the guarantee supports SBI’s expanding renewable portfolio and reflects collaboration across the World Bank Group to mobilize private capital.
Citi’s Global Head of Public Sector Group, Stephanie von Friedeburg, noted that the transaction underscores the role of public-private partnerships in advancing India’s rooftop solar program and broader climate objectives.
SBI Managing Director Rana Ashutosh Kumar Singh described the refinancing as a pioneering transaction that leverages international commercial financing backed by MIGA guarantees to strengthen India’s distributed solar ecosystem.
The transaction highlights the growing use of structured guarantees to scale rooftop solar deployment and accelerate India’s clean energy transition.
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