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.
Rio de De Janeiro, November 20, 2024
Multilateral Development Banks Welcome G20 Roadmap for MDB Reform
The Heads of 10 multilateral development banks (MDBs) welcomed today the endorsement by G20 Leaders of the G20 Roadmap towards Better, Bigger, and More Effective MDBs. The Roadmap outlines a comprehensive vision for continuing to reform MDBs to better address regional and global challenges, create more jobs and opportunities, and support countries to accelerate progress toward the Sustainable Development Goals (SDGs) and the goals of the Paris Agreement.
READ MOREBaku , November 18, 2024
AIIB Signs Landmark Private Sector Solar PV Project in Azerbaijan at COP29 in Baku
At COP29, the Asian Infrastructure Investment Bank (AIIB) signed a financing agreement of USD160 million for its first private-sector renewable energy project in Azerbaijan, marking a major step in expanding green infrastructure across the Caucasus region.
READ MOREBaku , November 14, 2024
GCA, AIIB Partner to Strengthen Climate Resilience in Infrastructure Projects
The Global Center on Adaptation (GCA) and the Asian Infrastructure Investment Bank (AIIB) have signed a Letter of Intent (LOI) to establish a strategic partnership aimed at mainstreaming climate adaptation and resilience within infrastructure projects across Asia and Africa.
READ MOREBaku , November 13, 2024
AIIB, ADB Renew Partnership to Tackle Regional Development Challenges
On the margins of COP29 in Baku, Azerbaijan, the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB) renewed their Memorandum of Understanding (MOU) to deepen cooperation in addressing Asia’s most pressing development challenges.
READ MORE