UK’s development finance institution and impact investor British International Investment (BII) has committed $75 million to the second Green Basket Bond. This bond is arranged by Symbiotics Investments, a leading emerging markets access platform and financial lender, and will increase financing to small-scale green projects across Africa, and South and South-East Asia through MSME lenders, with a particular focus on India.
The first Green Basket Bond, issued in 2022, supported 11 MSME lenders in India, Vietnam, Cambodia, Tunisia, Botswana, Kenya, Bangladesh and Nepal. The second programme will support an additional 10 – 15 MSME lenders who require smaller investment capital than BII is typically able to fund directly.
Under this programme, the MSME lenders will direct their lending to small businesses that face difficulty accessing funding. Like the first green basket bond, funding will be provided to green projects that cover renewable energy, energy efficiency, clean transportation, green buildings, agriculture, forestry and more.
Samir Abhyankar, Managing Director and Head of Financial Services, British International Investment, said, “Channelling capital to where it is most needed, not only supports local businesses and projects but also contributes to global efforts in building resilience against climate change.”