The Asian Development Bank (ADB) will invest $25 million in Vivriti Capital Limited’s (VCL) certified climate bond, marking the first climate bond issued by a medium-sized nonbank financial company in India. The bond proceeds will finance sectors such as electric vehicles, solar and wind energy, and waste management.
Certified by the Climate Bonds Initiative, the bond aims to increase climate finance access for underserved enterprises in India, including MSMEs, mid-market companies, and retail clients. At least 30% of the funds will be allocated to electric vehicle financing, including charging stations and battery swapping stations. The green loans will support projects that provide environmental and climate benefits.
“Climate bonds can bridge the large market gap for climate finance in India while supporting the development of the capital market. This partnership with Vivriti Capital Limited allows ADB to support scalable and commercially viable renewable energy projects and promote decarbonization of road transport, which accounts for up to 30% of urban air pollution in India,” said ADB Director General for Private Sector Operations Suzanne Gaboury.
India, facing severe climate-related risks, aims to cut carbon emissions by one billion tons by 2030 and reach net-zero emissions by 2070. With only 3.8% of domestic corporate bonds classified as green, the country urgently needs climate finance.
“As the country sets out to reduce carbon emissions by one billion tons by 2030 and achieve net zero by 2070, the need for substantial financial support has never been more crucial,” said VCL Founder and Managing Director Vineet Sukumar.
He added, “With this partnership, we are well-positioned to channel these funds into critical areas such as electric vehicles and renewable energy projects. These investments will not only drive sustainable economic growth but also create a lasting multiplier effect across the broader economy.”
