The UAE's Emirates Development Bank (EDB) plans to allocate 100 million dirhams ($27 million) to solar energy initiatives, helping boost the adoption of green energy solutions.

The state-owned development bank will target its newly launched Solar Energy Finance Program at micro, small, and medium enterprises (mSMEs) across the UAE.

The program offers medium- and long-term loans and working capital of up to AED 5 million, particularly directed at solar energy projects, EDB said in a statement on Thursday.

The bank said financing is offered for CAPEX for solar panels, while and greenfield and brownfield structured project financing is available for other renewable energy sources.

The loans have eight-year tenor, and are for structured finance projects and solar panels, with grace periods up to six months. Under the new scheme, EDB is offering a 100% Loan-to-Value (LTV) ratio and will be providing finance for the full appraised value or purchase price of the asset, it said.

(Writing by Brinda Darasha; editing by Daniel Luiz)