📋 Tender Overview
STATUS: Approved
MEMBER: India
SECTOR: Multi-sector
E&S CATEGORY
FI
PROJECT NUMBER: 000906
FINANCING
APPROVED FUNDING: USD150 million
FINANCING TYPE: Nonsovereign
TIMELINE
CONCEPT REVIEW
August 20, 2024
APPRAISAL REVIEW/FINAL REVIEW
January 13, 2025
FINANCING APPROVAL
March 19, 2025
OBJECTIVE
To accelerate India’s transition to a low-carbon economy by advancing renewable energy infrastructure or fostering electric mobility ecosystems, thereby reducing greenhouse gas emissions.
DESCRIPTION
The Project contemplates providing debt financing of USD150 million in INR equivalent to Aditya Birla Finance Limited (ABFL) to support its lending to projects in renewable energy and E-mobility sectors in India. The financing will be provided through subscription to non-convertible debentures (NCDs) to be issued by ABFL.
ABFL is a non-banking finance company (NBFC) providing diversified lending and financing solutions in India, including project finance loans, corporate loans, SME loans and personal loans. It is a 100% subsidiary of Aditya Birla Capital Limited (ABCL), which is the holding company for all financial services businesses of Aditya Birla Group (ABG).
ENVIRONMENTAL AND SOCIAL INFORMATION
Applicable Policy and Categorization. AIIB's Environmental and Social Policy (ESP) including Environmental and Social Exclusion List (ESEL) applies to this on-lending credit facility. The Project has been placed in Category FI because the financing structure involves the provision of funds through a Financial Institution (FI), whereby AIIB delegates to ABFL the decision-making on the use of AIIB's funds towards sub-projects meeting the conditions agreed upon with ABFL. This includes the selection, appraisal, approval, and monitoring of sub-projects and the oversight of the sub-borrowers and sub-projects in line with AIIB's ESP requirements.
Environment and Social Management System (ESMS). ABFL has committed to develop Environmental and Social Management System (ESMS) and Environmental and Social (E&S) Policy that comply AIIB’s ESP requirements for this Project before financial closure. The ESMS will incorporate the following key elements: AIIB’s ESEL, E&S categorization, E&S due diligence processes and E&S performance monitoring in alignment with AIIB ESP requirements. Activities such as coal mining, coal transportation or coal-fired power plants, as well as infrastructure exclusively dedicated to support any of these activities, will be excluded under the proposed facility.
Environmental and Social Aspects. The AIIB loan proceeds will be used for on-lending to the renewable energy (solar, wind, geothermal, pumped storage, production of hydrogen, and/or a combination of the preceding systems), energy storage, and E-mobility solutions and associated infrastructure projects. Financing to subprojects in these sectors will present various environmental and social risks that will be managed by AIIB’s ESF aligned ESMS of ABFL. ABFL throug
