SBI Secures EUR 100 Million Green Credit Line from AFD
State Bank of India (SBI) has signed a €100 million Line of Credit agreement with Agence Française de Développement (AFD) at SBI's GIFT City branch in Gandhinagar. The credit line aims to support climate mitigation and adaptation projects, aligning with SBI's goal to achieve a green portfolio of 7.5-10% of its domestic gross advances by 2030. This collaboration provides SBI with access to AFD's expertise in climate finance, enables competitive financing for green projects, and supports the integration of ESG factors into financing decisions. The partnership is expected to contribute significantly to India's transition towards a low-carbon economy.

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State Bank of India (SBI), India's largest public sector bank, has taken a significant step towards promoting sustainable finance by signing a EUR 100 million Line of Credit agreement with Agence Française de Développement (AFD). The deal, inked at SBI's GIFT City branch in Gandhinagar, underscores the bank's commitment to supporting climate action and sustainable development.
Key Highlights of the Agreement
Item | Detail |
---|---|
Credit Amount | EUR 100.00 million |
Partner | Agence Française de Développement (AFD) |
Signing Location | SBI's GIFT City branch, Gandhinagar |
Objectives of the Credit Line
The funds from this credit line are earmarked for two primary purposes:
- Climate Mitigation: Supporting actions aimed at reducing greenhouse gas emissions
- Climate Adaptation: Financing measures to minimize damage from climate change
Alignment with SBI's Green Portfolio Goals
This partnership aligns closely with SBI's ambitious environmental targets. The bank aims to achieve a green portfolio comprising 7.5-10% of its domestic gross advances by 2030. This credit line is expected to play a crucial role in helping SBI meet this objective and contribute to India's transition towards a low-carbon economy.
Benefits of the Collaboration
The collaboration between SBI and AFD is set to yield several advantages:
- Access to Expertise: SBI gains access to AFD's extensive knowledge in climate finance
- Competitive Financing: Enables SBI to offer attractive financing solutions for green projects
- Support for Green Technologies: Facilitates funding for innovative and sustainable technologies
- Project Structuring: Assistance in structuring environmentally friendly projects
- ESG Integration: Promotes the integration of Environmental, Social, and Governance (ESG) factors into financing decisions
Implications for India's Green Economy
This agreement represents a significant step in strengthening India's efforts to transition to a low-carbon economy. By channeling funds towards climate-friendly projects and initiatives, SBI and AFD are contributing to the country's broader sustainability goals and international climate commitments.
The partnership between State Bank of India and Agence Française de Développement marks a notable development in the Indian banking sector's approach to green financing. As climate change concerns continue to grow globally, such collaborations between financial institutions and international development agencies are likely to play an increasingly crucial role in shaping sustainable economic growth.
Historical Stock Returns for State Bank of India
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+0.07% | -1.68% | +0.41% | +16.51% | -1.47% | +278.54% |