India. Axis Bank Limited
| Date of agreement: | 10 May 2012 |
|---|---|
| Country: | India |
| Customer: | Axis Bank Limited |
| Amount in USD: | USD 50 million |
| Amount in EUR: | EUR 38.6 million |
| Maturity: | 10 years |
| NACE sector / loan type: | Electricity, gas, steam and hot water supply |
This loan contributes to climate change mitigation: 100%
Project
The EUR 38 million loan has been provided for the construction of seven wind turbine parks with a total capacity of 300 MW in the states of Tamil Nadu, Andhra Pradesh and Gujarat in India. The project comprises the setting up of 208 wind turbine generators of 0.85-2.10 MW, sourced from Vestas, Suzlon, Gamesa, GE and LSML. The wind turbine parks are being constructed by Beta Wind Farm Pvt. Ltd.
Axis Bank, a listed company, started operations in 1993. The Government of India holds an indirect stake of 37.2% in Axis Bank. Other shareholders include insurance companies, financial institutions and corporations
Fulfilment of NIB's mandate
This is a sizable project within renewable energy and thus considered important for CO2 reduction, which is in line with NIB’s environmental mandate and efforts to finance green energy projects. The project is expected to help decrease of 600,000 tonnes of CO2 annually due to crowding out of electricity produced by carbon-fuelled generators.
The project is in line with NIB’s competitiveness mandate, because the Danish manufacturer Vestas Wind Systems A/S is supplying turbines as well as service and maintenance for the wind parks.
Sustainability summary
The negative environmental impact from the construction is limited and reversible. Axis Bank is currently in the process of developing an environmental policy and written procedures for environmental review.