IFC Partners with Axis Bank for India’s First Blue Loan of $500 Million

In a landmark move, the International Finance Corporation (IFC) has partnered with Axis Bank to provide a $500 million loan aimed at scaling up blue finance and green projects in India. This is IFC’s first blue investment in the country and the largest climate finance initiative by IFC in India to date. Blue loans focus on funding water and wastewater management, reducing ocean plastic pollution, restoring marine ecosystems, and promoting offshore renewable energy, among others.

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The partnership marks a significant step toward fostering sustainable development in India. With rapid urbanization, India has immense potential for water efficiency, wastewater treatment, and green infrastructure, projected to grow into a $3 billion market by 2029. The blue loan aims to attract private sector investment to boost India’s climate resilience, particularly in sectors like green buildings, which could see a $1.4 trillion investment opportunity by 2030.

Climate and Sustainability Focus

Axis Bank’s Managing Director, Amitabh Chaudhry, emphasized the importance of sustainable lending to address climate change and drive environmentally responsible growth. The bank aims to grow its climate finance portfolio and has publicly committed ₹60,000 crore ($7.2 billion) in financing for ESG-aligned sectors by 2030, of which ₹30,000 crore ($3.1 billion) had already been achieved by March 2024.

IFC’s Commitment to Blue Finance

IFC has provided over $1.9 billion in blue loans and bonds globally since 2020. This partnership with Axis Bank will help expand resource-efficient growth, create jobs, and protect India’s clean water resources while aligning with the country’s climate goals. Additionally, IFC will offer advisory services to Axis Bank, particularly in growing the green buildings portfolio and catalyzing sustainable infrastructure development in India.

About IFC (International Finance Corporation)

• Member of the World Bank Group.
• Largest global development institution focused on private sector in emerging markets.
• Operates in over 100 countries.
• Committed a record $56 billion in FY 2024 to private companies and financial institutions.
• Focuses on leveraging private capital for poverty reduction and creating sustainable, livable environments.

About Axis Bank

• Third largest private-sector bank in India.
• Serves large/mid-corporates, SMEs, agriculture, and retail sectors.
• Network as of June 2024: 5,427 branches, 15,014 ATMs, and 2,987 touchpoints.
• Axis Group includes Axis Mutual Fund, Axis Securities, Axis Finance, Axis Capital, Freecharge, and more.
• Provides a wide range of banking and financial products/services across India.