MIGA issues $197.67 million guarantee for SBI rooftop solar refinancing

The Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group (WBG), has issued a $197.67 million guarantee to support refinancing of a $500 million World Bank loan extended to State Bank of India (SBI) for grid-connected rooftop solar projects. The five-year guarantee aims to accelerate the deployment of solar systems for commercial and industrial consumers across India.

The guarantee has been provided to Citibank in relation to its non-shareholder loan to SBI, enabling refinancing of the original World Bank credit. The transaction represents the second collaboration between Citi, MIGA, and SBI within two years, following a similar rooftop solar refinancing initiative in 2024. According to Tsutomu Yamamoto, Managing Director of MIGA, the guarantee supports SBI’s expanding renewable energy portfolio and aligns with India’s climate objectives. He stated that cooperation between MIGA and the International Bank for Reconstruction and Development (IBRD) reflects the “One World Bank Group” approach to mobilising private capital.

SBI launched its rooftop solar programme in 2016 with financial and technical support from the World Bank. The programme was designed to demonstrate the commercial viability of grid-connected rooftop solar photovoltaic (PV) systems in the commercial and industrial segments and encourage wider market adoption. An IBRD implementation report states that the programme has enabled installation of 1,004 MW of rooftop solar capacity to date. The refinanced loan is expected to continue supporting this national deployment.

Stephanie von Friedeburg, Global Head of Citi’s Public Sector Group, said the partnership highlights the role of public-private collaboration in advancing clean energy deployment and climate objectives.

MIGA, operating as the World Bank Group Guarantee Platform after consolidation of guarantee products in 2024, provides political risk insurance and credit enhancement to mobilise private investment in developing economies. The agency plans to expand annual guarantee issuance to $20 billion by 2030 to support climate and development priorities.

The featured photograph is for representation only.