SIDBI signs agreement with AFD for green finance for MSMEs

The Small Industries Development Bank of India (SIDBI) and AFD, France, have signed a $ 100 million credit facility agreement to scale up green finance solutions for Indian Micro, Small, and Medium Enterprises (MSMEs).

A press release said the partnership aims to support sustainable growth and drive the transition towards a low-carbon economy. The AFD will provide credit line of $ 100 million to SIDBI to deploy the funds to expand access to affordable financing for MSMEs investing in energy-efficient technologies, renewable energy solutions, and climate-friendly business practices.

Lise Breuil, AFD Country Director, India, said in a press release the “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.”

According to Manoj Mittal, Chairman and Managing Director, SIDBI, by leveraging this credit facility, the SIDBI aims to provide long-term financial solutions that enable MSMEs to adopt cleaner technologies, improve energy efficiency, and reduce their carbon footprint.