India and ADB sign $500 million loan to IIFCL for green and sustainable infrastructure
The Asian Development Bank loan, with a sovereign guarantee, will help India Infrastructure Finance Company Limited fund projects aligned with India's climate commitments.
Summary
The Government of India and the Asian Development Bank (ADB) signed a $500 million loan on 20 December 2024 to support green and sustainable infrastructure projects aligned with India's climate commitments, the Ministry of Finance announced on 23 December 2024. The loan, carrying a sovereign guarantee, will be extended to India Infrastructure Finance Company Limited (IIFCL) under the Financing Environmentally Sustainable Growth in Infrastructure Project. Juhi Mukherjee, Joint Secretary in the Department of Economic Affairs, signed for India and Country Director Mio Oka signed for ADB. The project will also set up a sustainability unit at IIFCL and an environmental sustainability framework and scoring method to rate projects.
Key facts
- Amount
- $500 million
- Signed on
- 20 December 2024 (announced 23 December 2024)
- Borrowing entity
- India Infrastructure Finance Company Limited (IIFCL), with sovereign guarantee
- Project
- Financing Environmentally Sustainable Growth in Infrastructure Project
- Signatories
- Juhi Mukherjee (DEA) and Mio Oka (ADB Country Director)
- Focus
- Connectivity, energy transition, urban projects, education, health care
- Institutional part
- Sustainability unit and sustainability scoring method at IIFCL
Practice MCQs 3 questions
What was the size of the loan signed by India and the Asian Development Bank in December 2024 for green and sustainable infrastructure through IIFCL?
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Correct answer: C — $500 million
PIB (Ministry of Finance): India and ADB signed a $500 million loan to support green and sustainable infrastructure projects, to be extended to IIFCL.
The ADB loan signed on 20 December 2024 under the Financing Environmentally Sustainable Growth in Infrastructure Project will be extended to which entity?
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Correct answer: B — India Infrastructure Finance Company Limited
PIB (Ministry of Finance): the ADB loan, with a sovereign guarantee, will be extended to India Infrastructure Finance Company Limited (IIFCL).
Consider the following statements about the India–ADB loan to IIFCL announced on 23 December 2024: 1. The loan carries a sovereign guarantee. 2. A sustainability unit and a sustainability scoring method for projects will be set up at IIFCL. 3. The loan was signed for India by the Secretary, Department of Financial Services. Which of the statements given above are correct?
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Correct answer: A — 1 and 2 only
PIB (Ministry of Finance): statements 1 and 2 are correct. Statement 3 is wrong because Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, signed for India.