IFC extends $500 mn loan to Axis Bank to fund green projects in India

International Finance Corporation (IFC), private sector lending arm of the World Bank Group, on Monday tied up with Axis Bank to provide a USD 500 million (about Rs 4,200 crore) loan to help develop a blue finance market and scale up financing of green projects in India.

This is IFC's first blue investment in India and the first blue transaction by a financial institution in the country, a statement said.

Blue loans are financing instruments that raise and earmark funds for investments such as water and wastewater management, reduction of marine plastic pollution, restoration of marine ecosystems, sustainable shipping, eco-friendly tourism, and offshore renewable energy.

This transaction is also the largest green financing by IFC in the country, it said, adding, the funding will enable Axis Bank to expand its climate finance portfolio.

With India's rapid urbanisation and economic growth, there is a substantial opportunity to enhance water and energy efficiency. The water and ...