The Government of India has partnered with the Asian Development Bank (ADB) to boost green and sustainable infrastructure initiatives. A loan agreement for USD 500 million (approximately Rs 4,250 crore) has been signed to fund projects aligned with India’s climate goals. This loan, backed by a sovereign guarantee, will be channeled through the India Infrastructure Finance Company Ltd (IIFCL), according to a statement from the Ministry of Finance on Monday.
India’s journey toward achieving its net-zero commitments demands substantial private capital investment. This will necessitate the development of innovative financing platforms and risk mitigation instruments to tackle inherent sector risks and address market asymmetries, the Ministry of Finance stated.
As a strategic development finance institution, the India Infrastructure Finance Company Ltd (IIFCL) is well-positioned to address these requirements, the Ministry of Finance stated. Over the years, the Asian Development Bank (ADB) has closely collaborated with IIFCL to enhance its operational and risk management capabilities.
With its evolution, IIFCL has increasingly focused on mobilizing private sector resources, necessitating an expansion of its product portfolio to attract institutional investors. The project will further strengthen IIFCL’s institutional capacity to incorporate green and best practices into infrastructure initiatives.
Additionally, the project will establish a dedicated sustainability unit and develop an environmental sustainability framework with a scoring methodology to evaluate the sustainability ratings of various projects, the ministry added.
About RR Finance
An integrated financial services group, offering a wide range of financial products and services to corporations, institutions, high-net-worth individuals, and retail investors
Explore a wide range of investment opportunities with RR Finance
Disclaimer : The recommendations, suggestions, views, and opinions expressed by experts are their own and do not reflect the views of RR Finance. This news is for information purposes only, not investment advice.