SIDBI Secures $100 Million Credit Line from France’s AFD for Green MSME Projects

The Small Industries Development Bank of India (SIDBI) has signed a $100 million credit facility agreement with France’s Agence Française de Développement (AFD) to enhance green financing for Indian micro, small, and medium enterprises (MSMEs), according to a SIDBI statement released on Wednesday.

This collaboration aims to promote sustainable economic growth and support India’s shift to a low-carbon economy. Under the agreement, AFD will extend a $100 million credit line to SIDBI, enabling it to provide affordable financing to MSMEs investing in renewable energy, energy-efficient technologies, and environmentally sustainable business practices.

The initiative aligns with both organizations' commitment to fostering climate resilience and sustainable development in emerging markets. It leverages AFD’s expertise in climate financing and SIDBI’s deep understanding of the MSME sector, the statement noted.

Lise Breuil, AFD’s Country Director for India, emphasized the importance of MSMEs in India's transition to carbon neutrality by 2070. She highlighted that this funding would empower MSMEs to adopt sustainable solutions and complement AFD’s work on the Greening Indian Financial System (GIFS) platform, which integrates sustainability into financial sector strategies.

SIDBI Chairman Manoj Mittal described the agreement as a significant step towards India's Net Zero goals. He noted that the partnership strengthens the role of sustainable finance in driving inclusive economic growth and provides MSMEs with long-term financial support to implement cleaner technologies, improve energy efficiency, and lower carbon emissions.