responsAbility to expand green lending activities in India with EFL

By OEM Update Editorial May 9, 2019 4:34 pm IST

A responsAbility-managed climate fund and Indian NBFC, Electronica Finance Limited (EFL) have entered into an agreement for issuance of green Masala Bonds. EFL issued rupee-denominated senior secured bonds of USD equivalent 10 million. The funds are dedicated to expanding EFL’s energy-efficient machinery lending portfolio for SMEs operating in the carbon-intensive manufacturing sector.

EFL is a Pune-based financier serving SMEs across India in the manufacturing and service sectors. The funds will be utilised for financing equipments in the machine tools, plastic and printing & packaging industries. Loans for financing these machines dominate EFL’s $180m gross loan portfolio.

India has committed to reduce the emissions intensity of its GDP by one third between 2005 and 2030. The Indian SME sector currently contributes 45 per cent of the country’s total greenhouse gas emissions from the manufacturing industries and is widely suffering from obsolete technology and lack of funding. All of these results in considerable potential for greenhouse gas mitigation.

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