MANILA, March 24 (Xinhua) -- The Asian Development Bank (ADB) Monday said it has struck a deal with an Indian non-banking financial firm to help Indian companies acquire loans and fund the manufacture of electric vehicles (EVs).
The deal includes a loan agreement for 150 million U.S. dollars signed between the ADB and Shriram Finance Limited to boost access to funds for micro, small, and medium-sized enterprises (MSMEs) in India with a focus on business loans and for financial support for building EVs and low-emission commercial vehicles for business purposes.
The ADB said the transaction is part of a 306 million-dollar financing package led by the ADB as the mandated lead arranger and bookrunner.
"This project underscores the ADB's commitment to supporting financial inclusion and sustainable development in India while addressing the significant financing gap faced by MSMEs," said ADB Country Director for India Mio Oka.
"By partnering with Shriram Finance Limited, we will empower MSMEs, particularly women entrepreneurs, and accelerate the transition to electric mobility, which is crucial for reducing air pollution and achieving India's climate goals," Oka said.
Shriram Finance Limited is the flagship company of the Shriram Group and is one of India's largest non-banking financial companies specializing in commercial vehicle financing and MSME lending.
"We value the ADB's support and funding, which will enable us to expand our financing to underserved MSMEs and promote the adoption of electric vehicles," said Shriram Finance Limited Executive Vice Chairman Umesh Revankar. ■
