SREI Infrastructure Finance, a private non-banking lender from India, has borrowed €40mn from the European Investment Bank (EIB).

The finance will be used to fund green projects in India and is guaranteed by Sace, the Italian export credit agency. A second instalment of €40mn is planned, but no date has been set for disbursement.

The loan will support the export of Italian equipment and goods to be used in electricity and heat generation schemes, wind, photovoltaic, hydropower and energy efficiency projects.

The sub-borrowers will be selected by SREI, but the EIB will conduct due-diligence to ensure that the projects to be funded meet its environmental standards.

The finance comes from the EIB’s energy sustainability and security of supply facility.