SIDBI and AFD, France, have signed a US$ 100Million credit facility agreement to boost green financing for Indian MSMEs. The partnership supports India’s low-carbon transition, enabling MSMEs to invest in sustainable solutions. The partnership leverages AFD’s global leadership in climate financing space and SIDBI’s expertise of MSME eco system.
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The Small Industries Development Bank of India (SIDBI) and Agence Française de Développement (AFD), France, have entered into a US$ 100 million Credit Facility Agreement (CFA), to enhance green financing for Indian micro, small, and medium enterprises (MSMEs). This partnership aims to foster sustainable growth and support India’s transition to a low-carbon economy.
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 US$ 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,” she added.
Through this agreement, AFD will extend a US$ 100 million credit line to SIDBI, which will be utilized to provide affordable financing for MSMEs adopting energy-efficient technologies, renewable energy solutions, and climate-friendly business practices.
The initiative aligns with both organizations’ commitment to sustainable economic development and climate resilience in emerging markets. By leveraging AFD’s global leadership in climate finance and SIDBI’s expertise in the MSME sector, the collaboration seeks to accelerate green investments and drive positive environmental impact.
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