SIDBI and AFD Ink $100 Million Deal to Strengthen Green Financing for Indian MSMEs.
Banking & Finance
On February 12, 2025, Lucknow, Uttar Pradesh (UP)-based Small Industries Development Bank of India (SIDBI) and Paris (France)-based French Development Agency (Agence Française de Développement, AFD) signed a USD 100 million Credit Facility Agreement (CFA) to enhance green finance solutions for India's Micro, Small, and Medium Enterprises (MSMEs).
- This partnership aims to promote sustainable development and aid the transition to a low-carbon economy by offering affordable financing solutions.
- AFD will provide a USD 100 million credit line to SIDBI, enabling MSMEs to access affordable financing for energy-efficient technologies, renewable energy solutions, and climate-friendly business practices, aligning with the goal of promoting green finance.
- The initiative aims to support businesses in transitioning to a low-carbon economy by reducing greenhouse gas emissions and promoting renewable energy adoption.
Main Point :- (i) MSMEs play a crucial role in India's commitment to achieving carbon neutrality by 2070, and this collaboration aligns with the efforts of the Greening Indian Financial System (GIFS) Platform.
(ii) The GIFS Platform focuses on incorporating sustainability and climate considerations into the strategies of Indian financial stakeholders.
(iii) This partnership highlights the increasing significance of sustainable finance in fostering inclusive and resilient economic growth.
About Small Industries Development Bank of India (SIDBI)
Chairman & MD : Manoj Mittal
Headquarters : Lucknow, Uttar Pradesh (UP)
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