The Asian Development Bank, or ADB, is investing $25 million in a climate bond issued by India’s Vivriti Capital to enhance climate financing for underserved small- and medium-sized businesses.
The lender will use the proceeds of the bond to finance solar and wind energy and waste management projects. At least 30% of the proceeds will be designated for financing electric vehicle purchases, charging infrastructure and battery swapping stations.
“Climate bonds can bridge the large market gap for climate finance in India while supporting the development of the capital market,” ADB’s Suzanne Gaboury said.
Vivriti’s bond has been certified by the Climate Bonds Initiative.
Asia has seen an uptick in green, social and sustainability-linked bond issuances, which rose 7.6% in 2023 to $235 billion.