SBI and AFD Sign €100 Million Line of Credit to Boost Green Financing in India

SBI and AFD Sign €100 Million Line of Credit -State Bank of India (SBI) has signed a €100 million Line of Credit (LoC) agreement with the Agence Française de Développement (AFD) to accelerate green financing in India. The agreement, finalized at SBI’s GIFT City branch in Gandhinagar, marks a significant step towards the country’s sustainable development and climate action goals.

This collaboration is not just about money—it represents India’s growing commitment to a greener economy. With the support of AFD, SBI plans to expand its green loan portfolio and provide financing for projects that reduce greenhouse gas emissions, promote renewable energy, and support climate adaptation.

SBI’s Green Ambition

SBI is India’s largest public sector bank and has been actively pushing towards sustainability. The bank has set a clear target of ensuring that 7.5% to 10% of its domestic loan portfolio is green by 2030. This latest agreement with AFD is a key part of that plan.

The €100 million credit line will allow SBI to:

Finance projects focused on renewable energy such as solar, wind, and hydro.
Support industries adopting eco-friendly and energy-efficient technologies.
Fund climate adaptation projects to help communities deal with rising risks of floods, droughts, and heat waves.
Provide competitive green loans at lower costs, making it easier for businesses to transition toward clean energy.

Source :- Times of India – SBI, AFD ink €100m green finance pact at GIFT City

Why AFD Partnership is Important

AFD, a French development finance institution, brings global expertise in climate finance and sustainability projects. By working together, SBI can access advanced knowledge in areas such as:

Innovative green technologies that are already used in Europe and other parts of the world.
Project structuring and risk management for large-scale renewable projects.
ESG (Environmental, Social, and Governance) integration, which ensures projects are not only profitable but also socially and environmentally responsible.

This partnership also strengthens India–France cooperation in climate action and aligns with international sustainability frameworks.

Key Highlights of the Deal

Partnership: State Bank of India (SBI) and Agence Française de Développement (AFD)
Amount: €100 million (approx. ₹900 crore)
Location of signing: GIFT City, Gandhinagar
Purpose: Boost green financing in India
Target: SBI aims to grow green loan portfolio to 7.5–10% of gross advances by 2030
Focus areas: Renewable energy, sustainable infrastructure, energy efficiency, climate resilience

Broader Impact on India’s Economy

India is currently the world’s third-largest emitter of greenhouse gases. At the same time, it is also one of the fastest-growing renewable energy markets. Deals like this one between SBI and AFD are crucial for accelerating India’s transition towards clean energy.

Benefits for India:

More renewable power projects – The financing will encourage investments in solar parks, wind farms, and hybrid renewable models.
Job creation – Green infrastructure development creates new employment opportunities in construction, technology, and maintenance.
Stronger climate resilience – Funds will also support projects that help India adapt to changing climate conditions, protecting farmers and vulnerable communities.
Cheaper green loans – With AFD’s support, SBI can offer loans at better rates to industries willing to adopt green solutions.

Role of GIFT City

The fact that this agreement was signed at GIFT City (Gujarat International Finance Tec-City) is also noteworthy. GIFT City is being developed as India’s international financial hub, attracting global institutions for banking, insurance, and investment. Hosting the agreement here highlights India’s intention to make GIFT City a hub for international sustainable finance as well.

SBI’s Green Journey

This is not the first time SBI has entered into green financing collaborations. Over the past few years, the bank has funded several renewable energy projects across India. By adding AFD’s €100 million credit line, SBI is strengthening its role as a leader in sustainable finance in the Indian banking sector.

Some of SBI’s recent steps in green finance include:

Financing large-scale solar power plants in Rajasthan and Gujarat.
Supporting wind energy projects across Tamil Nadu and Maharashtra.
Funding energy efficiency upgrades in industrial units to reduce carbon emissions.

Future Outlook

The €100 million credit line is only the beginning. Experts believe that this deal will open the door for more such collaborations between Indian banks and global development finance institutions.

Looking ahead:

SBI may expand its international partnerships for climate finance.
More Indian businesses will have access to affordable financing for clean energy.
Other Indian banks could follow SBI’s lead and boost their green portfolios.
India’s path to achieving net-zero emissions by 2070 will get stronger with more global collaborations like this.

Key Takeaways

SBI and AFD signed a €100 million Line of Credit to boost green financing in India.
The deal supports renewable energy, sustainable infrastructure, and climate resilience projects.
SBI aims to grow its green loan portfolio to 7.5–10% of domestic advances by 2030.
AFD brings expertise in climate finance, ESG integration, and green technology.
The agreement was signed at GIFT City, highlighting its role as India’s global financial hub.
The deal strengthens India–France cooperation and accelerates India’s climate action goals.

Conclusion

The SBI–AFD €100 million Line of Credit is a major step toward building a sustainable financial ecosystem in India. By combining SBI’s reach with AFD’s expertise, this partnership will accelerate the country’s green transition and support projects that create both economic growth and environmental protection.

As India works towards its climate goals and net-zero targets, collaborations like this are not just banking deals—they are building blocks for a greener, cleaner, and more resilient future.