ADB Invests $25M in Vivriti Capital’s First Certified Climate Bond to Boost India's Green Transition

The Climate Bonds Initiative is a global, not-for-profit organization focused on promoting large-scale investments in a low-carbon economy.

The Asian Development Bank (ADB) has announced a strategic $25 million investment in a certified climate bond issued by Vivriti Capital Limited (VCL), marking a milestone as the first such bond from a medium-sized nonbank financial company in India. Proceeds from the bond will be directed toward financing companies in sectors critical to sustainability, including electric vehicles, solar and wind energy, and waste management.

Certified by the Climate Bonds Initiative, the bond aims to expand access to climate finance for financially underserved segments, including micro, small, and medium-sized enterprises (MSMEs), mid-market corporates, and retail clients across India. Notably, at least 30% of the funds will be allocated for financing electric vehicle-related projects, such as charging stations and battery swapping stations. These green loans will fund both new and existing projects that offer significant environmental and climate benefits.

Promoting Climate Finance and Sustainable Growth in India

"Climate bonds can bridge the large market gap for climate finance in India while supporting the development of the capital market," said Suzanne Gaboury, ADB's Director General for Private Sector Operations. She highlighted that this partnership with Vivriti Capital will help finance scalable, commercially viable renewable energy projects and accelerate the decarbonization of India's transport sector, which contributes up to 30% of urban air pollution.

India faces an urgent need for climate finance to mitigate the increasing impacts of climate change, with over 80% of its population vulnerable to climate-related disasters. India's updated nationally determined contributions (NDCs) include ambitious targets, such as reducing carbon emissions by one billion tons by 2030 and achieving net-zero emissions by 2070. However, the country's debt capital market remains underdeveloped, with only 3.8% of domestic corporate bonds classified as green bonds.

Supporting India's Climate Goals

VCL's Founder and Managing Director, Vineet Sukumar, expressed pride in the partnership with ADB, stating, "This significant investment underscores our commitment to sustainability and aligns with India's climate ambitions." Sukumar emphasized that the funds will be channeled into key areas, particularly electric vehicles and renewable energy, which are crucial for driving sustainable economic growth and generating a multiplier effect across the broader economy.

Climate Bonds Initiative and Vivriti Capital's Role

The Climate Bonds Initiative is a global, not-for-profit organization focused on promoting large-scale investments in a low-carbon economy. It also administers the international Climate Bond Standards and Certification Scheme.

Founded in 2017, Vivriti Capital specializes in providing financial solutions to mid-market corporates, nonbank financial companies (NBFCs), MSMEs, and retail clients. VCL currently manages assets worth over INR 78 billion and serves more than 400 enterprise clients across 20+ Indian states. The company also provides financial services to over 1 million retail borrowers through 35 retail partners and supports more than 975 MSMEs through 45 supply chain anchors.

This collaboration between ADB and VCL marks a significant step toward achieving India's climate goals by leveraging innovative financing solutions to support green and sustainable projects across the country.