(MENAFN- Mid-East.Info) New Program Features Favorable Financing Terms: Up to 8 Years Tenor Loans and 100% Loan-to-Value Ratio.
Abu Dhabi, United Arab Emirates: Emirates Development bank (“EDB” or“the Bank”), the key financial engine of economic development and industrial advancement, has unveiled a new first of its kind Solar energy Finance Program aimed at supporting micro, small, and medium enterprises (mSMEs) across diverse sectors within the UAE. The program will allocate AED100 million to bolster the adoption of green energy solutions, focusing on solar energy initiatives.
The new program aims to support the shift toward cleaner energy sources, addressing cost barriers that may have hindered the adoption of sustainable practices. With convenient application processes, the program offers medium- and long-term loans and working capital of up to AED5 million, particularly directed at solar energy projects. This includes support for technology providers, equipment suppliers, energy consumers across varisectors, and other related energy endeavors such as electricity, hydrogen production and use, waste management, and water plants.
Ahmed Mohamed Al Naqbi, Chief Executive Officer of Emirates Development Bank, said:“It is timely that we have chosen the year we are proudly hosting the crucial COP28 climate talks to launch our solar energy financing package. EDB is now offering a competitive source of financing to help companies transition towards clean and sustainable energy solutions. This will reduce dependence on non-renewable sources and address climate change. By partnering with key government authorities and approved renewable energy consultants and contractors, we also aim to provide comprehensive support throughout the process. Our goal is to encourage businesses of all sizes to transition to more sustainable energy solutions and help develop major new renewable energy projects. In the Race toZero, no one can be left behind.”
EDB's newest offering comes with the Bank's usual highly beneficial terms and conditions, offering up to 8 years long tenor loans for structured finance projects and solar panels, with grace periods up to six months. Under the new scheme, EDB is offering a 100% Loan-to-Value (LTV) ratio and will be providing finance for the full appraised value or purchase price of the asset.
Financing is offered for CAPEX finance for solar panels, and Greenfield and Brownfield structured project financing is available for other renewable energy sources, enabling the development of larger-scale clean energy initiatives.
EDB is also allowing approved contractors of solar panels to access finance by leveraging EDB's receivable finance solution. This helps contractors manage cash flow, invest in new projects, or cover their operating expenses while awaiting customer payments.
By offering renewable energy financing, EDB aims to play a pivotal role in accelerating the transition towards a cleaner and greener future. Aligned with government priorities, EDB continues to deliver on its mission of fostering a healthy, sustainable, and self-reliant economy, with a mandate to approve AED30 billion in financing support to 13,500 companies within its five priority sectors – renewables, food security, manufacturing, technology and healthcare – by 2026.
About Emirates Development Bank:
Emirates Development Bank [EDB] the UAE's development bank, is a key financial engine for the economic development and industrial advancement of the UAE. EDB provides financial and non-financial support to businesses of all sizes from start-ups, SMEs to corporates driving economic competitiveness across five strategic priority sectors: advanced technology, food security, healthcare, renewables, and manufacturing. EDB was established under Federal Law by Decree No. 07 of 2011 issued by the late Sheikh Khalifa bin Zayed Al Nahyan; and became operational in June 2015.