India and the Asian Development Bank (ADB) signed a $500 million loan to support green and sustainable infrastructure projects aligned with the country’s climate commitments.
The agreement was inked on December 20 and the ADB loan, with a sovereign guarantee, will be extended to the India Infrastructure Finance Company Limited (IIFCL), according to a statement by the Union Finance Ministry. Signatories to the Financing Environmentally Sustainable Growth in Infrastructure Project were Juhi Mukherjee Joint Secretary, Department of Economic Affairs, Ministry of Finance, for the Government of India, and Country Director Mio Oka for ADB.
Mia Oka said, “ADB financing will help IIFCL provide long-term capital for infrastructure projects focusing on connectivity and energy transition as well as under-resourced sectors like urban projects, education, and health care.”
In a press release, Ministry of Finance stated, “To meet its net-zero commitments, the country needs immense private capital investment that will require innovative financing platforms and risk-mitigation instruments to address inherent sector risks and market asymmetries. As a strategic development finance institution, IIFCL is well-suited to meet these needs.”
Last week, the central government and the Asian Development Bank (ADB) signed a $350 million policy-based loan under the second subprogram of Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) program. (ANI)
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