ADB invests $25m in India’s 1st climate bond

The Asian Development Bank (ADB) has announced a $25 million investment in a certified climate bond issued by Vivriti Capital Limited (VCL), marking the first such bond issued by a medium-sized nonbank financial company in India.

The bond, certified by the Climate Bonds Initiative, will provide financing for sectors including electric vehicles, solar and wind energy, and waste management.

At least 30 per cent of the funds will be directed towards electric vehicle projects, such as charging stations and battery swapping infrastructure. This bond aims to enhance access to climate finance for underserved enterprises, including micro, small, and medium-sized enterprises (MSMEs) and mid-market corporations.

Suzanne Gaboury, ADB’s Director General for Private Sector Operations, emphasised the potential for climate bonds to close the finance gap in India, supporting renewable energy projects and decarbonisation efforts.

With India aiming to reduce carbon emissions by one billion tons by 2030 and achieve net-zero emissions by 2070, this investment will play a crucial role in the country’s climate goals.

VCL, founded in 2017, provides financing to mid-market corporates, MSMEs, and retail clients, with assets under management exceeding INR 78 billion.

Attribution: The Asian Development Bank (ADB)

Subediting: M. S. Salama