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The International Finance Corporation (IFC), a member of the World Bank Group, is partnering with private lender Axis Bank to provide a USD 500 million loan aimed at developing a blue finance market and scaling up green project financing in India.
According to a joint statement from IFC and Axis Bank, this marks IFC's first blue investment in India and the first blue transaction by a financial institution in the country. Since 2020, IFC has provided over USD 1.9 billion in blue loans and bonds to private institutions globally. Blue loans are financing instruments designated for investments in areas such as water and wastewater management, reducing marine plastic pollution, restoring marine ecosystems, sustainable shipping, eco-friendly tourism, and offshore renewable energy. The funding will allow Axis Bank to expand its climate finance portfolio. Amitabh Chaudhry, Managing Director and Chief Executive Officer of Axis Bank, said: "With the increasing effects of climate change on the global ecosystem and the growing awareness of environmental sustainability, it is imperative for banks to adopt sustainable lending practices." "We are excited to partner with IFC, with whom we share a common vision of strengthening standards and lending practices to boost sustainable finance in India." Makhtar Diop, Managing Director of IFC, highlighted the organisation's commitment to advancing India's sustainable and inclusive growth through its partnership with Axis Bank, a like-minded ally. Axis Bank remains dedicated to supporting India's climate agenda with a public commitment to providing Rs 60,000 crore (approximately USD 7.2 billion) in incremental financing for ESG-aligned sectors by 2030. Of this, Rs 30,000 crore (approximately USD 3.1 billion) in incremental financing had been achieved by March 2024. (ANI)
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