Why SBI signed €100M line of credit with France's AFD
What's the story
State Bank of India (SBI), the country's largest lender, has signed a €100 million line of credit agreement with Agence Francaise de Developpement (AFD). The deal was signed at SBI's GIFT City branch in Gandhinagar. The funds will be used for climate mitigation actions to reduce greenhouse gas emissions and climate adaptation measures to minimize damage from current or anticipated impacts of climate change.
Strategic move
SBI aims to achieve green portfolio of 7.5-10% by 2030
The SBI-AFD partnership is a strategic step toward SBI's goal of having a green portfolio of 7.5-10% of its domestic gross advances by 2030. The collaboration also seeks to offer competitive financing solutions that would further strengthen India's green transition drive. By enabling these measures, this partnership hopes to further advance India into a low-carbon economy while boosting resilience against climate-related risks.
Expertise utilization
Partnership will help SBI align with global sustainability frameworks
The collaboration will permit SBI to leverage AFD's expertise in climate finance and align with global sustainability frameworks. This includes support for innovative green technologies, project structuring, and ESG integration to ensure measurable environmental and social impact. The partnership is a major step toward enhancing India's resilience to climate-related risks while promoting sustainable development through green financing initiatives.