SIDBI, AFD Sign $100mn Pact To Boost MSME Green Finance

SIDBI, AFD Sign USD 100M Credit Facility Agreement To Boost MSME Green Finance

Small Industries Development Bank of India (SIDBI) and AFD, France have signed a USD 100 million credit facility agreement (CFA) to scale up Green Finance solutions for Indian micro, small, and medium enterprises (MSMEs). This partnership aims to support sustainable growth and drive the transition towards a low-carbon economy.

Under this agreement, AFD would provide a credit line of USD 100 million to SIDBI to deploy the funds to expand access to affordable financing for MSMEs. They would invest in energy-efficient technologies, renewable energy solutions, and climate-friendly business practices.

Lise Breuil, AFD Country Director, India, stated: “At AFD, we are proud to support India’s transition towards a greener and more resilient economy. The USD 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 achieving carbon neutrality by 2070.

This initiative also complements our work on the Greening Indian Financial System (GIFS) Platform, which focuses on integrating sustainability and a climate-perspective into Indian Financial Stakeholders strategies– starting with Development Finance Institutions in public sector.”

Manoj Mittal, Chairman and Managing Director, SIDBI, stated: “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 & enterprising economy.

The partnership underscores the growing importance of sustainable finance in driving inclusive economic growth. By leveraging this credit facility, SIDBI aims to provide long-term financial solutions that enable MSMEs to adopt cleaner technologies, improve energy efficiency, and reduce their carbon footprint.”