New Delhi: Vivriti Capital Limited (VCL), a leading mid-market non-banking financial company (NBFC), has raised USD 25 million from the Asian Development Bank (ADB) to support its Vivriti Capital Climate Finance Project. This is the first certified climate bond issued by a private-sector NBFC in India. The funds will help finance renewable energy initiatives, including solar, wind energy, and electric vehicle (EV) ecosystems.
At least 30% of the funds will be directed toward the EV ecosystem, such as charging stations and battery-swapping infrastructure, in addition to on-lending to retail borrowers for EV purchases. The financing will also support enterprise and retail borrowers in waste management sectors, aligning with India’s decarbonization goals.
The 4-year tenor debt facility will be issued in Indian rupees. VCL plans to start disbursing loans by Q3 2024, with the bond fully subscribed by ADB during the same period.
Parth Sanghani, Chief Treasury Officer, Vivriti Capital, said, “This significant investment from the Asian Development Bank highlights our steadfast commitment to driving sustainability. By directing these funds into strategic loans for electric vehicles and renewable energy projects, we aim to catalyze sustainable economic growth.”
ADB’s investment supports India’s efforts to reduce carbon emissions, focusing on the renewable energy sector and decarbonization of the transport sector, which accounts for a significant portion of urban air pollution.
Suzanne Gaboury, Director General for Private Sector Operations, ADB, said, “Climate bonds can bridge the large market gap for climate finance in India while supporting the development of the capital market.”
VCL’s expertise in cash flow-based underwriting and streamlined processes positions the company to effectively direct climate financing towards scalable and commercially viable projects. The funds will target underserved sectors, including micro, small, and medium-sized enterprises (MSMEs), mid-market corporates, and retail clients.
The funding aligns with India’s broader goals of reducing carbon emissions by one billion tons by 2030 and achieving net-zero emissions by 2070.
