Asian Development Bank Invests $25 Million in Climate Bond Issued by Vivriti Capital Limited
Sustainability Economics
E2E AUTOMATION AND LIFECYCLE MANAGEMENT OF NET-ZERO TRANSITIONS
The Asian Development Bank (ADB) announced a $25 million investment in a climate bond issued by Vivriti Capital Limited (VCL).?
The Climate Bonds Initiative certified this bond, making it the first medium-sized nonbank financial company in India to issue one.?
The fund will help businesses in industries like waste management, solar and wind energy, and electric cars.?
Through the Climate Bonds Initiative, underserved Indian businesses, micro, small, and medium-sized (SMEs) businesses, mid-market corporates, and retail clients will have easier access to climate finance.?
Suzanne Gaboury ADB Director General for Private Sector Operations said, “Climate bonds can bridge the large market gap for climate finance in India while supporting the development of the capital market.”?
She added, “This partnership with Vivriti Capital Limited allows ADB to support scalable and commercially viable renewable energy projects and promote decarbonization of road transport, which accounts for up to 30% of urban air pollution in India.”?
India must make this investment to accomplish its aggressive climate targets which include reaching net-zero emissions by 2070 and cutting one billion tons of carbon emissions by 2030.?
The debt capital market in India needs more development, as only 3.8% of domestic corporate bonds are classified as green bonds.?