British Intl Investment Commits USD 75 Mn For Green Lending To Small Businesses In Africa & Asia

New Delhi, Jun 26 (KNN) In a major boost for Micro, Small, and Medium Enterprises (MSMEs) in developing nations, British International Investment (BII), the UK's development finance institution, has committed USD 75 million to a second green basket bond.

This initiative, arranged by Symbiotics Investments, is set to boost green financing for small businesses across Africa, South and South-East Asia.

The green lending programme is tailored specifically for MSME lenders, aiming to increase financing to small-scale green projects.

Notably, 50 per cent of the financing is designated for India, highlighting the country's significant MSME sector and its potential for green transformation.

The second green basket bond expands on the success of its predecessor, which supported 11 MSME lenders in various countries including India, Vietnam, Cambodia, and others.

By targeting new MSME lenders not included in the first bond, this initiative aims to broaden its impact and reach more small businesses.

Samir Abhyankar, BII's Managing Director and Head of Financial Services Group, emphasised the importance of empowering smaller financial institutions that cater to MSMEs.

He stated, "This partnership signifies our continued commitment to supporting sustainable development in climate-vulnerable regions through the MSME sector."

The bond will fund a wide array of green projects relevant to small businesses, including renewable energy, energy efficiency, clean transportation, green buildings, and sustainable agriculture.

This diverse focus allows MSMEs across various sectors to access green financing and contribute to climate change mitigation efforts.

Yvan Renaud, CEO of Symbiotics Investments, expressed optimism about the bond's potential to catalyse further investment in MSME-led green projects. "We hope this second green basket bond will mobilise more capital for similar initiatives, recognising the key role of small businesses in tackling climate change," he said.

As countries worldwide strive to meet their climate goals, the role of MSMEs in driving sustainable practices becomes increasingly critical.

This innovative financial instrument not only supports the green transition of small businesses but also promotes inclusive economic growth in developing nations.

(KNN Bureau)