International investor IFC has committed a record $2.97 billion (Rs 24,561 crore) across 30 projects in the financial year ended June 30, more than doubling its lending in the country.
“India remains IFC’s largest country portfolio and together with its partners, its projects are driving innovative financing and climate initiatives to deliver impact at scale,” the investor said in a statement on Wednesday.
This includes advancing India’s decarbonisation efforts in the manufacturing sector, scaling domestic production of electric vehicles, ramping up a public-private partnership to spur development, unlocking capital for critical power infrastructure, enhancing access to finance for MSMEs, accelerating climate lending through pioneering sustainability-linked bonds, and supporting access to green, affordable housing, it added.
This week, IFC partnered with Shriram Housing Finance to promote green affordable housing finance in the country. Last week, it said it would invest 100 million dollars in IIFL Home Finance.
IFC committed a record $11 billion to 108 projects in Asia and the Pacific in the fiscal year ended June 30, a 10 % year-on-year increase. This comprised $4.7 billion in long-term financing from its own account, $3.4 billion in mobilization, and $2.9 billion in short-term trade and supply-chain finance to facilitate trade flows, it said.
Thirty-nine percent of long-term financing from IFC’s own account was invested in projects that will help tackle climate change and marine plastic waste, it said. Projects ranged from investments in Mongolia’s first green bond and blue finance in Thailand, to electric vehicles in India and sustainability-linked finance with pricing incentives tied to supporting the energy transition in South and Southeast Asia, it added.
A record $4.7 billion was committed to financial institutions in the region, which are expected to improve access to finance for MSMEs through the provision of more than 1.6 million loans, with specific targets for women-owned businesses., It said.
IFC’s investments in financial institutions also helped increase access to insurance for underserved people. Other projects are expected to provide more than 500,000 loans for affordable homes, many of which are for green housing, improving financial inclusion across the region, it said.
“In the face of a multitude of challenges, the vibrant private sector in Asia and the Pacific is playing an increasingly critical role in helping the region to overcome its biggest development issues,” said Riccardo Puliti, IFC’s regional vice president for Asia and the Pacific. “This record year cements our regional leadership in supporting the private sector and positions us to deliver on the aspirations of the World Bank Group’s Evolution Roadmap,” Puliti said.