May 28, 2024
Banking Finance

Emirates Development Bank launches solar energy financing initiative

AED100-million programme focuses on green energy solutions in the UAE

Emirates Development Bank (EDB), the UAE’s development bank, has launched a new solar energy finance programme to support micro, small, and medium enterprises (MSMEs) across diverse sectors in the UAE.

The programme will allocate AED100 million to hasten the adoption of green energy solutions, focusing on solar energy initiatives.

The new initiative supports the shift toward cleaner energy sources while addressing cost barriers that may have hindered the adoption of sustainable practices.

Solar energy focus

With convenient application processes, the programme offers medium- and long-term loans and working capital of up to AED5 million, mainly for solar energy projects.

This includes support for technology providers, equipment suppliers, energy consumers across various sectors, and other related energy endeavours such as electricity, hydrogen production and use, waste management, and water plants.

Solar Ahmed Mohamed Al Naqbi: Our initiative syncs with the UAE hosting COP. Image: Emirates Development Bank
Ahmed Mohamed Al Naqbi: The programme syncs with COP28 UAE. Image: Emirates Development Bank

Ahmed Mohamed Al Naqbi, Chief Executive Officer of Emirates Development Bank, said: “It is timely that we have chosen the year we proudly host the crucial COP28 climate talks to launch our solar energy financing package.

“EDB is now offering a competitive source of financing to help UAE 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 aim to provide 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. No one can be left behind in the race to net zero.”

6-month grace period

EDB’s newest scheme offers up to eight years-long tenor loans for structured finance projects and solar panels, with a grace period of up to six months.

Under the new scheme, EDB offers a 100% Loan-to-Value(LTV) ratio and will provide finance for the asset’s total appraised value or purchase price.

For CAPEX finance for solar panels, greenfield and brownfield structured project financing is offered 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 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 in the UAE.

Featured image: A row of solar panels. Image: Michael Wilson

    Middle East News 247

    Middle East News 247

    Middle East News 247 delivers the latest business and lifestyle news and essential infotainment for, and from the Middle East region, with key focus on the GCC nations: United Arab Emirates (UAE), Saudi Arabia, Qatar, Bahrain, Kuwait, and Oman.
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