IFC extends $500 mn loan to Axis Bank to fund green projects in India

The International Finance Corporation (IFC) has partnered with Axis Bank to provide a USD 500 million loan aimed at developing India s blue finance market and increasing funding for green projects. This marks IFC s first blue investment in India and the largest green financing initiative in the country. The funding will enable Axis Bank to expand its climate finance portfolio, addressing the need for private sector investment in sustainable infrastructure due to limited public funding. The blue loan will catalyze private sector investment in emerging asset classes and foster a sustainable blue economy. IFC Managing Director Makhtar Diop emphasizes the significance of India as a testing ground for innovative climate adaptation approaches. Axis Bank s Managing Director and CEO Amitabh Chaudhry highlights the importance of sustainable lending practices in the face of climate change and the bank s commitment to supporting India s climate agenda. Axis Bank has already committed to incremental financing of Rs 60,000 crore (approximately USD 7.2 billion) in ESG-aligned sectors by 2030, with Rs 30,000 crore (approximately USD 3.1 billion) achieved by March 2024. The bank has been a pioneer in sustainable financing, issuing the first green US dollar bond in 2016 and the first sustainable US dollar AT1 bond from India in 2021. The IFC-Axis Bank partnership aims to promote resource-efficient growth, create jobs, and protect critical clean water resources while supporting India s climate goals. The blue loan will address the substantial opportunity to enhance water and energy efficiency in India s rapidly urbanizing and growing economy. The water and wastewater treatment market is expected to reach USD 3 billion by 2029, and the green building sector presents an investment opportunity of USD 1.4 trillion by 2030. In summary, the IFC and Axis Bank collaboration will drive private sector investment in India s blue finance market and green projects, contributing to sustainable growth,

Source: business-standard.com
Published on 2024-10-07

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