The State Bank of India (SBI) and the European Investment Bank (EIB) on Friday said they have agreed to back an initiative of €100 million for new high-impact climate action and sustainability business financing
The State Bank of India (SBI) and the European Investment Bank (EIB) on Friday said they have agreed to back an initiative of €100 million for new high-impact climate action and sustainability business financing.
“The importance of the new Neev Fund II for accelerating India’s green recovery from covid-19 and strengthening sustainable investment was highlighted by EIB president Werner Hoyer in discussions ahead of the formal announcement at the EU-India leaders meeting in Portugal," according to a joint statement by SBI and EIB.
SBI and EIB will together support the new Neev Fund II that will unlock climate action and sustainability investment by businesses across India through new equity financing, the statement added.
Neev Fund II, under the management of SBICap Ventures, an SBI group company, will invest up to €100 million in Indian small and medium-sized enterprises (SMEs) and provide growth and expansion capital to companies offering solutions for clean energy, electric vehicles, efficient use of raw materials, and water and circular economy projects in India. It will enable Indian innovative and emerging companies to fund their growth through equity or quasi-equity instruments.
“Our partnership with SBI will create a much-needed source of equity financing for climate action and environmental sustainability solutions offered by innovative small and medium enterprises," said Christian Kettel Thomsen, vice-president of EIB and in charge of India operations.