State Bank of India and AFD Ink €100 Million Credit Deal for Green Projects in India

State Bank of India (SBI) on Saturday announced that it has signed a Line of Credit agreement of €100 million with Agence Francaise de Developpement (AFD). The agreement was concluded at SBI’s GIFT City branch in Gandhinagar.

Use of Funds

The bank said the funds will be directed toward climate mitigation and adaptation projects. Mitigation measures will focus on reducing greenhouse gas emissions, while adaptation measures will aim at strengthening systems and infrastructure to deal with the impact of climate change.

As per news reports, SBI has stated that the collaboration will support India’s transition toward a low-carbon economy. The projects to be financed are intended to reduce environmental risks and prepare for long-term climate challenges.

Portfolio Targets

The bank has set a target of having 7.5% to 10% of its domestic gross advances in green projects by 2030. The agreement with AFD has been described as part of this larger plan to gradually expand SBI’s green financing portfolio.

Role of AFD

The arrangement also allows SBI to make use of AFD’s expertise in areas such as climate finance, project structuring, and green technologies. The partnership will align with international sustainability frameworks and support financing models that include environmental and social considerations.

Broader Context

As per news reports, SBI has been scaling up its involvement in climate-linked projects over recent years. The agreement with AFD adds to earlier steps the bank has taken to integrate climate considerations into its lending practices and support India’s commitments on sustainable growth.

Read more: SBI Eyes Top 10 Global Bank Spot by Market Cap in 5 Years!

Conclusion

The €100 million line of credit is another move in SBI’s plan to expand green lending. The funds will be channelled into projects focused on both reducing emissions and building climate resilience.

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