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SEFP commitment period extended
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05 February 2013

The Fiji Development Bank welcomes the World Bank’s decision to extend the commitment period for their guarantee facility under the Sustainable Energy Financing Project (SEFP) to 30 June, 2017. The commitment period of the guarantee had expired on 17 August, 2012. The guarantee on approved projects is valid until 31 December, 2017.

The extension for the commitment period is only available to Fiji. Other regional countries participating in the programme have been excluded due to the low uptake of the project guarantee over five year period that it had been in effect (2007-2012).  
FDB signed on as a participating financial institution for the World Bank’s Sustainable Energy Financing Project (SEFP) on 6 July, 2011 and has since approved financing for 14 projects valued at $3.40MM.  The 50% guarantee under WB’s Risk Sharing Fund covers loans approved for the use of solar, hydro, coconut oil fuel and energy saver equipment.

Through the SEFP initiative, FDB offers a Sustainable Energy Financing Facility (SEFF) that also allows eligible farmers and businesses to borrow at concessional interest rates through the Reserve Bank of Fiji’s Import Substitution and Export Finance Facility (ISEFF). Loan applications for ISEFF are subject to RBF conditions. SEFF is also available under normal lending conditions at FDB.

“We are pleased and grateful that the World Bank agreed to our request to extend the commitment period to June 2017. The guarantee provides not only a level of comfort to financiers such as ourselves, but it also reduces the security requirement on the part of the borrower as an inducement to take on renewable and sustainable energy projects which will not only help reduce our high fuel import bill but also help reduce our carbon footprint,” said FDB’s Chief Executive Officer, Deve Toganivalu.
“I would encourage businesses that are interested in pursuing renewable and sustainable energy projects to consider putting applications early because for one, there is a limited time period to the guarantee and for another, to apply early means you have a longer period to effect repayments until the guarantee expires.”

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