IFC, Axis Bank launch $500m blue finance initiative in India

The International Finance Corporation (IFC), the investment arm of the World Bank, announced on Tuesday a partnership with Axis Bank to provide a $500 million loan that will support the development of a blue finance market and expand green project funding in India. This marks a significant milestone as it is IFC’s first blue investment and the first blue finance transaction by a financial institution in the country.

Blue loans specifically target initiatives that promote sustainable water and wastewater management, marine ecosystem restoration, sustainable shipping, and offshore renewable energy.

This partnership also represents IFC’s largest green financing effort in India to date, enabling Axis Bank to bolster its climate finance portfolio. As India’s urbanization accelerates, the water and wastewater market is projected to grow substantially, reaching $3 billion by 2029 from $1.6 billion in 2022.

The green buildings sector also offers a substantial investment opportunity, estimated to reach $1.4 trillion by 2030. To bridge the funding gap, private capital will play a crucial role in driving these investments.

According to Makhtar Diop, Managing Director of IFC, the partnership marks the IFC’s “largest climate finance initiative in the country to date.”

Attribution: IFC

Subediting: Y.Yasser