EXIM Bank’s Rampal Project Financing Dilemma

D. Satish
Additional contact information
D. Satish: ICFAI Business School (IBS), Hyderabad, The ICFAI Foundation for Higher education (IFHE), India

Asian Case Research Journal (ACRJ), 2019, vol. 23, issue 02, 237-271

Abstract: Export Import Bank of India (EXIM Bank) had agreed to finance a US$1.62 billion debt which constituted 70% of the capital needed to construct a controversial 1320 MW coal-based thermal power plant in Rampal, Bangladesh. The plant was located within 14 km of the Sundarbans, recognized by UNESCO as a world heritage site. According to environmentalists, the construction and operation of this plant would give rise to serious environmental, social, and governance issues which would have an adverse, irreversible, and unprecedented effect on the Sundarbans and its people.Amidst growing pressure from activists, Yaduvendra Mathur, Chairman and Managing Director of EXIM Bank, has to take a call on whether to go ahead with financing the project or not. The decision will not only involve assessing the financial impact of the Rampal exposure on the bank given the risks associated with the project, but also involve evaluating issues relating to financing fossil fuel exposure at a time when the financial community has taken climate change seriously and is decarbonizing its portfolios while investing in clean energy.

Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0218927519500093
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:acrjxx:v:23:y:2019:i:02:n:s0218927519500093

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0218927519500093

Access Statistics for this article

Asian Case Research Journal (ACRJ) is currently edited by Lau Geok Theng

More articles in Asian Case Research Journal (ACRJ) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().