British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, has pledged $75 million to the second green basket bond to enhance small scale green projects.
The bond was arranged by Symbiotics Investments, an emerging markets access platform and financial lender.
This green lending programme aims to increase financing for small-scale green projects across Africa, South and South-East Asia, with a particular emphasis on India.
“We are committing $75 million to the second Green Basket Bond arranged by Symbiotics Investments, a leading emerging markets access platform and financial lender,” BII said.
Support new MSME lenders
According to BII in a statement, the initiative will support new MSME lenders that were not included in the first Green Basket Bond.
Following the success of the initial Green Basket Bond issued in 2022, this programme will continue to leverage Symbiotics’ extensive global network and BII’s 76-year history as an impact investor.
The goal is to support an additional 10 – 15 MSME lenders who require smaller investment capital than BII typically provides directly.
It noted that the these MSME lenders will channel their funds to small businesses that often struggle to secure financing, particularly for green projects.
Similar to the first Green Basket Bond, funding will be directed towards green initiatives such as renewable energy, energy efficiency, clean transportation, green buildings, agriculture, forestry, and more.
What the stakeholders said
Managing Director and Head of Financial Services, British International Investment, Samir Abhyankar noted that partnering with Symbiotics on a second green basket bond signifies a continued commitment to empowering smaller financial institutions and supporting sustainable development in climate-vulnerable regions.
“Channelling capital to where it is most needed, not only supports local businesses and projects but also contributes to global efforts in building resilience against climate change.
The expansion of this programme is a testament to the positive impact and success of the initial partnership. We look forward to continuing working with Symbiotics to further efforts to mobilise more private capital into this space,” he said.
CEO of Symbiotics Investments Yvan Renaud said that the company is very grateful to British International Investment for partnering with Symbiotics on this second green basket bond.
“We share the view that financing dedicated MSME lenders and reaching smaller local businesses and projects strongly contributes to the effectiveness of climate finance.
We hope that this second green basket bond will have a catalytic effect on the mobilisation of capital for similar projects that play a key role in successfully tackling climate change and its consequences,” he said.
He noted that the first Green Basket Bond supported 11 MSME lenders in India, Vietnam, Cambodia, Tunisia, Botswana, Kenya, Bangladesh and Nepal.