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SIDBI and AFD Ink $100 Million Deal to Strengthen Green Financing for Indian MSMEs.

Banking & Finance | Dated: 14 Feb 2025

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).

🎯 Key Highlights:

  • - 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.

💡 Other Important Facts:

  • (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.

📚 Test Your Knowledge:

Recently, SIDBI and AFD signed a credit facility agreement worth how much to promote green finance for MSMEs in India?

Correct Answer: $100 Million

🚀 Quick Recap:

About Small Industries Development Bank of India (SIDBI)

  • Chairman & MD : Manoj Mittal
  • Headquarters : Lucknow, Uttar Pradesh (UP)