India / Photovoltaic Project in Andhra Pradesh
(Underwriting of Loan Insurance)

Nippon Export and Investment Insurance (NEXI: President and CEO: Kazuhiko Bando) has decided to provide loan insurance for Photovoltaic Project in Andhra Pradesh. This is the first time for NEXI to provide loan insurance on a photovoltaic project in India.

The project aims to build a 350 MW photovoltaic power station in Kurnool, Andra Pradesh, located in Southern India, to sell the generated electricity to NTPC Limited for 25 years. The project is implemented via SBG Cleantech ProjectCo Private Limited ("SBG Cleantech"), which has been established by SoftBank Group Corp.

Under the initiative named as Jawaharlal Nehru National Solar Mission the Indian government is aiming to secure and diversify the country’s source of electric supply and has announced that by 2022 the country will develop new solar power generation sources with a total capacity of 100 GW. This is a photovoltaic power plant project which started operation under the initiative above and will contribute to the reduction of greenhouse gas emissions in the country as well as the economic and social development in the country through power generation.

On September 1, 2014, H.E. Mr. Narendra Modi, Prime Minister of India and Prime Minister Shinzo Abe announced “the Japan-India Investment Promotion Partnership”, which expressed intention to realize 3.5 trillion Yen of public and private investment and financing from Japan in five years. The project is also in conformity with such action by the both governments.

In this project, SBG Cleantech　is going to raise co-financing, and NEXI will provide insurance to support the financing offered by Mizuho Bank, Ltd. The Japan Bank for International Cooperation (JBIC) has also decided to provide a loan to this project.

As a financial institution implementing Japan’s policy, NEXI will continue to promote infrastructure development that contributes to GHG emission reductions through supporting Japanese companies.

Contact:　　　Power Group, Structured and Trade Finance Insurance Department