 "IFC to partner with Bajaj Finance to pump in $400 mn for climate finance")
International Finance Corporation (IFC) on Wednesday said that it will partner with Bajaj Finance to invest $400 million out of the $1 billion fundraising to aid in the expansion of the latter’s EV fleet, energy-efficient consumer goods (EECG) and women empowerment.
IFC’s $400 million loan will enable Bajaj Finance to expand access to finance for customers opting to buy EVs, including 2-wheelers, 3-wheelers and 4-wheelers, and strengthen its presence in the EECG space. The partnership will also boost Bajaj Finance’s ability to fund and support more women-owned micro-enterprises and women micro-borrowers.
“IFC's funding of $400 million serves as a catalyst for diversifying our financing sources. With this, our volume of outstanding climate loans stands to increase 4x to $600 million in 2027 from over $150 million in 2024. It helps us enable greater usage of EVs and energy-efficient consumer goods, support more women-owned micro-borrowers, and contribute better to India’s inclusive and low carbon future,” said Sandeep Jain, chief financial officer & chief operating officer, Bajaj Finance Ltd.
The funding is aimed at increasing competitiveness in the climate finance market, supporting the country’s climate goals, and promoting financial inclusion.
IFC is a member of the World Bank Group with focus on the private sector in the emerging market. In the financial year 2024, IFC committed $56 billion to private companies and financial institutions in developing countries.
Imad N. Fakhoury, regional director for South Asia, IFC, said, “Accelerating climate financing is crucial for India to meet its net-zero goals. IFC’s investment in Bajaj Finance will boost market competition, inspiring other non-banking financial companies (NBFCs) and investors to expand their financing for energy-efficient solutions, e-mobility, and microfinance. Together with Bajaj Finance, a like-minded partner, we are fully committed to accelerating green growth for the country, while also empowering women and closing the gender gap.”