SIDBI and AFD sign $100 million credit facility to boost green finance for MSMEs

The Small Industries Development Bank of India (SIDBI) and Agence Française de Développement (AFD) have signed a $100 million credit facility agreement aimed at enhancing green finance solutions for micro, small, and medium enterprises (MSMEs) in India. 

Under the agreement, AFD will provide SIDBI with a $100 million credit line, which will be used to offer MSMEs access to affordable financing for energy-efficient technologies, renewable energy solutions, and climate-friendly business practices.

This initiative combines AFD’s global experience in climate finance with SIDBI’s expertise in the MSME sector. The partnership aligns with India’s broader commitment to achieving carbon neutrality by 2070 and complements AFD’s ongoing work through the Greening Indian Financial System (GIFS) platform, which focuses on integrating sustainability into financial strategies, particularly within public sector development finance institutions.

Since its establishment in 1990, SIDBI has played a crucial role in supporting MSMEs across various sectors, facilitating access to credit and development initiatives for traditional enterprises, small-scale industries, and technology-driven startups.