IFC and Axis Bank Partner for USD 500 Mn Loan to Fund India’s Sustainable Projects
IFC partners with Axis Bank to offer a USD 500 million loan, promoting sustainable growth, green projects, and blue finance, enhancing water management and eco-friendly infrastructure, while supporting India's climate goals and job creation.
October 09, 2024. By EI News Network
This marks IFC’s first blue investment in India and the country's first blue transaction by a financial institution. Blue loans focus on financing water-related initiatives, such as wastewater management, marine ecosystem restoration, and eco-friendly shipping. The partnership is also IFC's largest green financing in India, aligning with the country’s sustainable development goals.
The funds will help Axis Bank grow its climate finance portfolio, particularly in sectors critical to India’s rapid urbanisation and economic growth. These sectors include water and wastewater treatment, which is expected to grow from a USD 1.6 billion market in 2022 to USD 3 billion by 2029, and the green buildings sector, which presents an investment opportunity of USD 1.4 trillion by 2030.
Amitabh Chaudhry, MD and CEO of Axis Bank, expressed the bank’s commitment to sustainable lending, emphasizing the urgent need to adopt such practices in the wake of climate change. He added, “We are excited to partner with IFC to strengthen standards and boost sustainable finance in India, aiming to meet the climate agenda through increased financing in ESG-aligned sectors.”
Makhtar Diop, MD of IFC, highlighted India’s potential as a leader in climate adaptation and sustainable finance, stating, “This loan will catalyse private sector investment in the blue economy, while advancing India’s climate goals and job creation through green projects.”
Axis Bank is also a pioneer in sustainable finance in India, having committed to financing INR 60,000 crore (approx. USD 7.2 billion) in ESG-aligned sectors by 2030. The bank has a history of issuing sustainable instruments, including senior green bonds and Basel III tier I bonds.
IFC, through this partnership, will provide advisory services to support Axis Bank in expanding its green building portfolio, including affordable housing projects. Additionally, IFC will offer a performance-based incentive to accelerate the design and construction of green buildings certified under the EDGE standard.
This partnership aligns with IFC’s global commitment to promote sustainable growth, having previously issued over USD 1.9 billion in blue loans since 2020.
please contact: contact@energetica-india.net.
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