IFC and Axis Bank Launch India's First Blue Finance Initiative

The International Finance Corporation and Axis Bank have announced a USD 500 million partnership to develop India's blue finance market and enhance green project financing. This marks IFC's first blue investment in India, focusing on sustainable practices like water management and renewable energy.

The International Finance Corporation (IFC), part of the World Bank Group, has teamed up with private lender Axis Bank to provide a USD 500 million loan aimed at cultivating a blue finance market and boosting green project financing in India. According to their joint statement, this initiative represents IFC's maiden blue investment in India and the first of such transactions by any financial institution in the country. Globally, IFC has extended more than USD 1.9 billion in blue loans and bonds since 2020.

Blue loans are specialized financial instruments used to fund investments in water and wastewater management, reduction of marine plastic pollution, marine ecosystem restoration, sustainable shipping, eco-friendly tourism, and offshore renewable energy projects. The funding is set to expand Axis Bank's climate finance portfolio significantly.

Amitabh Chaudhry, Managing Director and CEO of Axis Bank, emphasized the urgency of adopting sustainable lending practices amid increasing climate change impacts and environmental awareness. 'We are thrilled to partner with IFC, sharing a vision to strengthen sustainable finance standards in India,' he stated. Makhtar Diop, IFC's Managing Director, reiterated the organization's commitment to advancing India's sustainable growth by partnering with Axis Bank. The bank has pledged to provide Rs 60,000 crore (approximately USD 7.2 billion) in incremental financing for ESG-aligned sectors by 2030, with Rs 30,000 crore achieved by March 2024.

(With inputs from agencies.)