MIGA Guarantees Citibank N.A. Loan to Boost State Bank of India Rooftop Solar Rollout

The Multilateral Investment Guarantee Agency has issued a USD 197.67 million guarantee to Citibank N.A. for its non-shareholder loan to the State Bank of India (SBI), strengthening financing support for rooftop solar installations across India.

The five-year guarantee, provided under the World Bank Group Guarantee Platform, will enable SBI to refinance the remaining principal of a USD 500 million World Bank loan extended in 2016 for Grid-connected Rooftop Solar Photovoltaic (GRPV) systems. The refinancing will support ongoing deployment of rooftop solar projects supplying clean electricity to commercial and industrial consumers while helping cut greenhouse gas emissions by replacing carbon-intensive thermal power.

According to MIGA, the guarantee protects Citi against the risk of non-honoring of financial obligations by a state-owned enterprise and supports the next phase of a national clean energy initiative. The GRPV program forms part of India’s broader renewable energy strategy, with the latest International Bank for Reconstruction and Development implementation report confirming installations of 1,004 MW of rooftop solar capacity under the scheme.

“MIGA’s guarantee will support SBI’s expanding renewable energy portfolio and contribute to India’s climate goals,” said Tsutomu Yamamoto, Managing Director of MIGA, adding that the project highlights cooperation across the World Bank Group to mobilize private capital.

India’s clean energy transition requires annual investments of USD 160–300 billion to achieve net-zero emissions by 2070. SBI has been mandated to allocate at least 7.5 percent of its domestic lending to green projects and has used the GRPV programme to demonstrate the commercial viability of rooftop solar in the industrial and commercial segments.

Citibank acted as sole lender, mandated lead arranger, facility agent and MIGA coordinator for the transaction, building on a similar rooftop solar refinancing completed with SBI and MIGA in 2024. The deal is expected to lower SBI’s borrowing costs, diversify its funding sources and free up capacity for further World Bank lending by transferring exposure to commercial lenders’ balance sheets.

Officials from Citi and SBI said the transaction underscores the role of public-private partnerships in accelerating renewable energy deployment and reducing India’s carbon footprint, particularly in the fast-growing distributed solar sector.