SIDBI Secures $100 Million Credit Line from AFD for Eco-Friendly Initiatives in MSME Sector
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Synopsis
SIDBI has secured a $100 million credit facility from AFD, France, to bolster green finance initiatives aimed at Indian MSMEs, promoting energy efficiency and sustainable economic growth.
Key Takeaways
- SIDBI partners with AFD for green finance.
- $100 million credit facility for MSMEs.
- Focus on sustainable economic growth.
- Supports India's carbon neutrality goal.
- Empowers MSMEs to adopt cleaner technologies.
New Delhi, Feb 12 (NationPress) The Small Industries Development Bank of India (SIDBI) has entered into a $100 million credit facility agreement with AFD, France, aimed at enhancing green financing solutions for Indian micro, small, and medium enterprises (MSMEs), as per a statement released by SIDBI on Wednesday.
This collaboration is designed to promote sustainable development and facilitate the transition towards a low-carbon economy.
As part of this agreement, AFD will extend a credit line of $100 million to SIDBI, enabling the bank to provide affordable financial solutions for MSMEs that are focusing on energy-efficient technologies, renewable energy options, and climate-friendly practices.
This initiative is in line with the objectives of both organizations to support sustainable economic growth and enhance climate resilience in developing markets. The partnership combines AFD’s global expertise in climate financing with SIDBI’s deep knowledge of the MSME sector, as outlined in the statement.
Lise Breuil, AFD’s country director for India, remarked: “At AFD, we take pride in aiding India’s transition to a more sustainable and resilient economy. The $100 million credit line with SIDBI is a significant advancement in empowering MSMEs to invest in sustainable solutions. These enterprises are vital for India’s goal of achieving carbon neutrality by 2070.”
“Additionally, this initiative supports our efforts on the Greening Indian Financial System (GIFS) Platform, which aims to incorporate sustainability and climate considerations into the strategies of Indian financial stakeholders, starting with the development of public sector financial institutions.”
SIDBI Chairman Manoj Mittal expressed: “This partnership represents a major milestone towards India’s national Net Zero commitments. This collaboration propels our collective vision of a greener, more inclusive, responsive, and entrepreneurial economy.”
“The partnership highlights the increasing significance of sustainable finance in fostering inclusive economic growth. By utilizing this credit facility, SIDBI aims to offer long-term financial solutions that empower MSMEs to adopt cleaner technologies, enhance energy efficiency, and minimize their carbon footprint.
