denotes premium content | Dec 1 2008 
News
posted 27 Aug 2008
Deal news
HSBC backs solar-powered irrigation in Sri Lanka
HSBC has finalised an innovative $16m deal with the Sri Lankan government to finance the provision of 5,000 solar-powered drop irrigation systems. The systems are being provided under the country’s Sustainable Agriculture Water Management Project, an initiative of the Sri Lankan Ministry of Agriculture.
The systems from energy giant BP will be distributed to farmers across the country, which they will pay for with low-interest ten-year loans. The equipment will help them to improve crop yields by enabling them to farm crops all year round. Conventional irrigation systems are cumbersome and require some form of fossil fuel – typically diesel – to power them.
HSBC put together the deal backed by a 12-year buyer credit facility from Australian export credit agency Export Finance and Insurance Corporation (EFIC), combined with a five year commercal loan from HSBC. Sri Lanka’s Ministry of Financing acted as the borrower.
