DBS Bank, a prominent player in sustainable finance, has successfully arranged an $80 million green loan for Aseem Infrastructure Finance Limited (AIFL). This marks AIFL’s inaugural External Commercial Borrowing (ECB) transaction, aimed at supporting India’s transition to a decarbonised future. The financing will be directed towards renewable energy projects, further propelling India’s efforts to meet its ambitious climate targets. In this milestone transaction, DBS Bank not only demonstrated its leadership in the green finance sector but also highlighted the growing importance of clean energy financing in India.
Key Highlights of the Green Loan
- Loan Amount: USD 80 Million
- Transaction Type: Maiden ECB and Green Loan
- Recipient: Aseem Infrastructure Finance Limited (AIFL)
- Lead Arranger: DBS Bank Ltd.
- Sector Focus: Renewable Energy and Clean Infrastructure Projects
- Location: GIFT City, India
- Date of Completion: 2024
The Significance of the Loan for Aseem Infrastructure Finance
Aseem Infrastructure Finance Limited (AIFL), a registered Non-Banking Financial Company (NBFC) and Infrastructure Finance Company (IFC) by the RBI, has been a catalyst for sustainable infrastructure financing in India. Backed by the National Investment and Infrastructure Fund (NIIF), AIFL is dedicated to funding clean energy projects that align with India’s green growth trajectory.
Virender Pankaj, CEO of Aseem Infrastructure Finance, expressed his enthusiasm about the deal, stating, “This maiden ECB transaction represents a pivotal step in our mission to drive sustainable development by harmonising economic growth with environmental responsibility. It empowers us to channel investments into renewable energy projects, catalysing climate-positive infrastructure across India.”
DBS Bank’s Role in Facilitating Sustainable Finance
As the sole mandated lead arranger of this green finance deal, DBS Bank Ltd. played a crucial role in structuring the transaction according to internationally recognised sustainable finance principles. The bank’s expertise and global commitment to responsible banking were integral to securing this green loan for AIFL.
Rajat Verma, Managing Director and CEO of DBS Bank India Ltd., remarked, “This maiden green loan is a milestone for AIFL, and DBS is proud to be a trusted partner in their journey as they support India’s transition to a decarbonised future.”
In 2024, DBS was recognised as the Best Bank for Sustainable Finance in India by Global Finance, underscoring the bank’s continuous efforts to drive responsible and impactful investments across the country.
India’s Growing Renewable Energy Market
India is on track to become one of the world’s fastest-growing renewable energy markets. With energy demand rising due to urbanisation and industrialisation, renewable energy is playing an increasingly significant role in the country’s power mix. India’s installed renewable energy capacity is expected to reach 220.10 GW by March 2025, contributing to the nation’s goal of achieving 500 GW of non-fossil fuel energy capacity by 2030.
A Sustainable Future for India’s Infrastructure
AIFL’s involvement in funding renewable energy projects ensures that India’s infrastructure development aligns with environmental sustainability. This green loan supports India’s efforts to create a climate-positive world, where economic growth and environmental responsibility are seamlessly integrated.
Quick Facts
| Factor | Details |
|---|---|
| Loan Amount | USD 80 Million |
| Type of Transaction | External Commercial Borrowing (ECB) and Green Loan |
| Recipient | Aseem Infrastructure Finance Limited (AIFL) |
| Lead Arranger | DBS Bank Ltd. |
| Sector | Renewable Energy Projects |
| Key Focus | Sustainable Infrastructure and Clean Energy |
| Completion Date | 2024 |
| Recognition | DBS Bank awarded Best Bank for Sustainable Finance – India (2024) |
Quotes from Key Stakeholders
- Rajat Verma, Managing Director & CEO, DBS Bank India Ltd.:
“This maiden green loan is a milestone for AIFL, and DBS is proud to be a trusted partner in their journey as they support India’s transition to a decarbonised future.” - Virender Pankaj, CEO, Aseem Infrastructure Finance Ltd.:
“This loan empowers us to channel investments into Renewable Energy projects, catalysing climate-positive infrastructure across India.”
FAQs
1. What is the purpose of the $80 million green loan provided by DBS Bank?
The green loan is intended to fund renewable energy and clean infrastructure projects in India, supporting the country’s transition towards a decarbonised future.
2. Who are the key players in this green loan transaction?
DBS Bank Ltd. is the sole mandated lead arranger, while Aseem Infrastructure Finance Limited (AIFL) is the recipient of the loan.
3. What is the significance of AIFL in India’s infrastructure sector?
AIFL, backed by the National Investment and Infrastructure Fund (NIIF), is a crucial player in financing infrastructure projects, particularly in the renewable energy sector, promoting sustainable development in India.
4. How does this loan support India’s climate goals?
The loan will enable AIFL to invest in renewable energy projects, contributing to India’s target of 500 GW of non-fossil fuel energy capacity by 2030.
5. What recognition did DBS Bank receive for its sustainable finance efforts?
In 2024, DBS Bank was named the Best Bank for Sustainable Finance in India by Global Finance for its commitment to responsible banking.