SBI and EIB invest up to € 100 million in Indian SMEs focused on climate change and sustainability – The New Indian Express

Through PTI

MUMBAI: The European Investment Bank and the country’s largest lender, SBI, on Friday struck a pact to jointly inject € 100 million in equity financing into small Indian businesses focused on climate change and sustainability.

An agreement was signed on the sidelines of the European Union-India leaders meeting in Portugal, where the two financial institutions agreed to support the initiative, according to a statement.

SBI is already investing in a vehicle called Neev Funds for its impact investing goals, and the two entities have created “Neev Fund II” to advance this partnership. This is one of the EIB’s first private equity investments in India.

“Neev Fund II will provide equity to SMEs with a focus on climate risk mitigation, promotion of social development, job creation and gender equality at scale,” said the SBI Chair, Dinesh Khara.

He added that cooperation with the EIB, one of the world’s largest providers of climate finance, will strengthen and further deepen the link between India and the European Union.

The EIB and the SBI will together support the new Neev Fund II investment fund that will unlock climate action and sustainable investments for businesses across India through new equity financing.

Led by SBICap Ventures, a SBI group company, Neev Fund II will invest up to € 100 million in Indian small and medium-sized enterprises (SMEs) and provide growth and expansion capital to companies offering solutions clean energy, electric vehicles, the efficient use of raw materials and water and circular economy projects in the country, the statement said.

The fund will enable innovative and emerging Indian companies to finance their growth through equity or quasi-equity instruments, he added.

“Innovative solutions often require innovative forms of financing, such as private equity funds. Our partnership with the State Bank of India will create an indispensable source of equity finance for climate action and environmental sustainability solutions offered by innovative SMEs ”, said Christian Kettel Thomsen, EIB Chief Operating Officer in India.

SBI Ventures Managing Director and Managing Director Suresh Kozhikote said the Neev Fund generates commercially attractive returns while making a significant positive contribution to the company.

Neev Fund II will provide equity and quasi-equity to SMEs (small and medium-sized enterprises), targeting sectors that support the achievement of the United Nations Sustainable Development Goals (SDGs), aimed in particular at limiting climate change through energy, agriculture, water, and waste management technologies.

This could include companies offering solutions for the development of new technologies for climate change, environmental protection, electric vehicles and any other innovative product and service that could benefit climate action across the world, says the press release.