Small Industries Development Bank of India (SIDBI) and Agence Française de Développement (AFD) have signed a $100 million Credit Facility Agreement (CFA) to scale up green finance solutions for Indian Micro, Small and Medium Enterprises (MSMEs). The partnership aims to support sustainable growth and drive transition towards a low-carbon economy, a statement from AFD notified.
The statement mentioned that under the agreement, AFD will provide credit line of $100 million to SIDBI to deploy the funds to expand access to affordable financing for MSMEs investing in energy-efficient technologies, renewable energy solutions and climate-friendly business practices. This initiative aligns with both institutions’ commitment to foster sustainable economic development and enhance climate resilience in emerging markets. The partnership leverages AFD’s global leadership in climate financing space and SIDBI’s understanding of MSME ecosystem.
Lise Breuil, Country Director—India, AFD, stated in the statement, “At AFD, we are proud to support India’s transition towards a greener and more resilient economy. The $100 million credit line signed with SIDBI marks a crucial step in empowering MSMEs to invest in sustainable solutions. MSMEs have to play a major role in India’s commitment to achieve carbon neutrality by 2070. This initiative also complements our work on the Greening Indian Financial System (GIFS) platform, which focusses on integrating sustainability and a climate-perspective into Indian Financial Stakeholders strategies– starting with Development Finance Institutions in public sector.”
Further, according to the statement, the partnership underscores the growing importance of sustainable finance in driving inclusive economic growth.
Manoj Mittal, Chairman and Managing Director, SIDBI, also stated in the statement, “For SIDBI, this partnership marks a significant step towards India’s national Net Zero commitments. This collaboration gives fillip to our shared vision of greener, more inclusive, responsive and enterprising economy.”
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