DBN credit line for climate-relevant infrastructure projects II

active

As part of the FC project, a credit line is granted to refinance climate-relevant investments in infrastructure projects with a focus on renewable energies, water and transport. The project sponsor is the state-owned Development Bank of Namibia (DBN). For the credit line, the DBN has been promised a low-interest loan (FC development loan) of up to EUR 30 million with a term of twelve years with up to three grace years. The equivalent of the loan in euros will be paid out as a local currency loan in South African rand. The aim of the FC measure is the sustainable use of the financing offer provided by the DBN for investments in climate-relevant infrastructure measures with a focus on renewable energies, water and transport (FC measure objective, outcome). The credit line enables the DBN to provide long-term financing in local currency to private and public investors who want to invest in climate-relevant infrastructure projects. This is intended to support the DBN on its institutional growth path so that it can fulfill its role as the leading state infrastructure and climate bank in Namibia in the medium term and stimulate the expansion of the lending business for climate-relevant investments. By providing long-term financing options for climate-relevant infrastructure measures that are currently not available on the local capital market, the project is contributing to the broadening and deepening of the financial system in Namibia and thus contributing to sustainable economic development. By promoting climate-relevant infrastructure measures, the project is also contributing to improved climate and environmental protection (DC program objective, impact).