22 July 2011

US Ex–Im Bank $16m loan funds Azure’s 5MW plant in Rajasthan

While leading a week-long business development mission in India (including participating in the US–India Strategic Dialogue meeting in New Delhi on 19 July headed by Secretary of State Hillary Rodham Clinton), Fred P. Hochberg, chairman & president of the Export–Import Bank of the United States (Ex–Im Bank), has announced $25m in loans for two new solar-energy projects.

Ex–Im Bank is an independent federal agency that helps to create and maintain US jobs by filling gaps in private export financing (via mechanisms including working capital guarantees, export-credit insurance, and financing to help foreign buyers purchase US goods and services). In particular, it has a congressional mandate to increase support for US renewable energy and other environmentally beneficial exports. In the first nine months of fiscal 2011 (through 30 June), Ex–Im Bank has authorized more than $215m to support US environmentally beneficial exports, including about $100m for renewable-energy products and services.

“India is a key country for US exports and an increasingly important market for Ex–Im Bank. In the first nine months of fiscal year 2011, the bank has approved $1.4bn in transactions on behalf of American exporters and their Indian buyers. This financing has increased our overall exposure in India to $5.5bn and supported over 10,000 American jobs,” said Hochberg. “Next year India may very well become Ex-Im Bank’s biggest single market,” he adds.

“As the world's two largest democracies, the United States and India have a solid and unique partnership,” Hochberg continues. “There are tremendous opportunities for investments in projects that create jobs and help address India's growing energy and infrastructure needs.”

Specifically, in the first nine months of fiscal 2011, Ex–Im Bank approved $75m in solar transactions in India, which will produce about 35MW of power. It also has about $500m in upcoming Indian solar transactions, which will generate 315MW of power.

Already, earlier this week (on 18 July), Ex–Im Bank authorized a $9.2m, 18-year loan for cadmium telluride (CdTe) thin-film photovoltaic (PV) solar modules from Abound Solar Inc in Loveland, CO, USA to India-based solar integrator Punj Lloyd Solar Power Ltd for the construction of a 5MW solar power plant in the state of Rajasthan.

Now Ex–Im Bank is also providing a $16m, 16.5-year loan to Azure Power Rajasthan Pvt Ltd to purchase CdTe modules made by First Solar Inc of Tempe, AZ, USA for the construction of a 5MW solar plant in Rajasthan.

Hochberg is also meeting with officials in Mumbai from the Indian Merchant Chamber, the State Bank of India, Tata Capital, CitiBank India and ICICI Bank to discuss Ex–Im’s role in financing renewable energy and infrastructure projects.

See related items:

US Ex-Im Bank $9.2m loan finances Abound's exports to India

Tags: First Solar Azure Solar

Visit: www.firstsolar.com

Visit: www.azurepower.com

Visit: www.exim.gov