Vivriti Capital secures $25m from ADB to drive Climate Financing in India

By Gloria Mathias

Vivriti Capital Limited (VCL) will receive a $25 million investment from the Asian Development Bank (ADB) for a certified climate bond issue. The funds will finance companies in sectors such as electric vehicles, solar and wind energy, and waste management.

The bond is being certified by the Climate Bonds Initiative. It aims to enhance access to climate finance for financially underserved enterprises, including MSMEs, mid-market corporates, and retail clients in India. At least 30% of the funds will be earmarked for electric vehicle financing, including charging stations and battery swapping stations. Green loans are used to fund new or existing projects that deliver environmental or climate-related benefits.

“Climate bonds can bridge the large market gap for climate finance in India while supporting the development of the capital market,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “This partnership with Vivriti Capital Limited allows ADB to support scalable and commercially viable renewable energy projects and promote decarbonisation of road transport, which accounts for up to 30% of urban air pollution in India.”

India urgently needs climate finance to tackle the worsening impacts of climate change, with more than 80% of the population at risk of climate-related disasters. Moreover, India’s debt capital market needs further development, with only 3.8% of domestic corporate bonds classified as green bonds.

“We are honoured to receive this significant investment from the Asian Development Bank, a testament to our unwavering commitment to sustainability and India’s ambitious climate goals. As the country sets out to reduce carbon emissions by one billion tons by 2030 and achieve net zero by 2070, the need for substantial financial support has never been more crucial,” said VCL Founder and Managing Director Vineet Sukumar. “With this partnership, we are well-positioned to channel these funds into critical areas such as electric vehicles and renewable energy projects. These investments will not only drive sustainable economic growth but also create a lasting multiplier effect across the broader economy.”

The Climate Bonds Initiative is an investor-focused not-for-profit that promotes large-scale investment in the low-carbon economy.