Luxembourg, July 12, 2019

AIIB Approves On-Lending Facility to Support Renewable Energy in India

The Asian Infrastructure Investment Bank’s (AIIB) latest project will increase the supply of renewable energy in India by mobilizing private capital. The project provides a USD100-million loan to L&T Infrastructure Finance Company Limited (LTIF), a subsidiary of L&T Finance Holdings Ltd and a leading non-bank financier of renewable energy in India. The financing marks AIIB’s first loan to a non-banking finance company (NBFC).

The loan proceeds will be used to on-lend to wind and solar power infrastructure projects throughout India. The loan mobilizes private capital from sponsors, other financiers and LTIF’s own sources.

India is committed to reducing its carbon intensity by 30 to 35 percent of 2005 levels by 2030 under the Paris Agreement. The country will need to increase the share of non-fossil fuels in its energy mix if it is to achieve this target. Investment in renewable energy is an efficient way for India to reduce its carbon intensity while meeting its growing energy needs. NBFCs play a crucial role in broadening access to financial services, enhancing competition and diversity in the financial sector, and has emerged as key financiers of renewable energy.

“AIIB’s financing will help secure the funding supply for renewable energy project development in India,” said AIIB Vice President and Chief Investment Officer D.J. Pandian. “The project supports AIIB’s commitment to sustainable energy for Asia to reduce the carbon intensity of energy supply.”

LTIF’s collaboration with AIIB will also help the company develop its environmental and social capabilities which will in the future enable it to tap the international market for green finance.

Additional information about the project can be found here.

About AIIB

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, we began operations in January 2016 and have now grown to 97 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.

Logos for Download

AIIB logo is available in JPEG and PDF format.

DOWNLOAD

Media Contact

Lingxiao He

Press Officer

+86 10 8358 0683

SEND AN EMAIL
More News Articles

Beijing, April 01, 2025

AIIB Statement on Myanmar and Thailand Earthquake

The Asian Infrastructure Investment Bank (AIIB) expresses its sincere condolences to all those affected by the recent earthquake in Myanmar and Thailand.

READ MORE

Beijing, March 31, 2025

AIIB Launches 2025 Presidential Election

The Asian Infrastructure Investment Bank (AIIB) has opened the nomination process for the election of its next president. The election will be conducted at the 10th Annual Meeting of the Bank’s Board of Governors on June 24-26, 2025.

READ MORE

Beijing, March 24, 2025

Registration Now Open for the 2025 AIIB Annual Meeting

The Asian Infrastructure Investment Bank (AIIB) is pleased to announce that registration is now open for the Tenth Annual Meeting of the Board of Governors on June 24-26, 2025, in Beijing, China—home to AIIB’s Headquarters.

READ MORE

Vienna, March 13, 2025

AIIB, IFC Join Forces to Support Green Energy Transformation in Central and Eastern Europe

Kommunalkredit Austria AG (Kommunalkredit), a recognized leader in infrastructure financing, is issuing a €200 million bond with the International Finance Corporation (IFC)–a member of the World Bank Group–and the Asian Infrastructure Investment Bank (AIIB) each investing up to €100 million. This collaboration will help accelerate the green energy transition in Central and Eastern Europe (CEE) and Türkiye, with a focus on renewable energy projects, particularly wind power, as part of the region’s broader commitment to decarbonization.

READ MORE