Electronica Finance Limited Signs US$15 Mn Deal with ResponsAbility Investments AG

Highlights :

  • Funding to be earmarked for financing energy efficient machines and promoting rooftop solar installations
Electronica Finance Limited Signs US$15 Mn Deal with ResponsAbility Investments AG Electronica Finance Limited Signs US$15 Mn Deal with ResponsAbility Investments AG

Electronica Finance Limited (EFL), a Pune-based Non-Banking Financial Company (NBFC) specialising in financing MSMEs with a focus on financial inclusion and energy efficient machine financing, has signed a US$15 million deal from Global Climate Partnership Fund (GCPF), managed by responsAbility Investments AG.

The finance provided under the deal will be for six years and the funding will be earmarked for financing energy efficient machines, which lead to reduction in carbon dioxide and greenhouse gas (GHG) emissions by 20-30 per cent, and promote rooftop solar installations. GCPF focuses on mitigating climate change through direct or indirect investments in renewable energy and energy efficiency investments across the globe.

Commenting on the development, Shilpa Pophale, Managing Director & CEO, Electronica Finance Limited, said, “With an aim to build India as a developed nation by 2047, our government has been laying emphasis on infrastructure, investment, innovation and inclusivity. One of the key elements of achieving this aim is developing the MSME segment in all aspects including financing.” She added, “Supporting this vision, we at Electronica Finance Limited act as a financing partner to MSME customers by helping them access energy efficient machines as well as renewable energy solutions like rooftop solar. Not only does this make MSMEs competitive but also makes our economy sustainable. I am glad that we have once again collaborated with a reputed partner like responsAbility Investments AG in driving this initiative.”

“We are happy and honoured to renew our partnership with Electronica Finance Limited, a leading financier of climate-positive technologies for Indian MSMEs. The company’s vision and commitment to sustainable lending practices, as evidenced by their dedication to implementing an Environment and Social Management System (ESMS) aligned with international best practices, makes it an ideal partner for the fund,” expressed David Diaz Formidoni, Head of Financial Institution Investments, Climate Finance, responsAbility Investments AG.

“The company’s commitment to creating disruption in climate financing through funding of energy efficient machines and rooftop solar to the MSME sector is well aligned with GCPF’s aim to promote innovative investments that mitigate climate change,” added Vivekanand Ramachandaran, Chief Financial Officer, Electronica Finance Limited.

The Global Climate Partnership Fund is a Luxembourg-based fund managed by the Swiss asset manager responsAbility Investments AG. The Fund is a public-private partnership dedicated to mitigating climate change through a reduction of greenhouse gas emissions in emerging and developing markets. It focuses on financing energy efficiency and renewable energy projects, through local financial institutions or directly. Only projects that generate significant energy savings and pledge to reduce projected greenhouse gas emissions by at least 20 per cent are eligible for funding.

Climate financing is essential for India if the country wants to make a swifter move towards smart and decentralized grids, energy-efficient green buildings, infrastructure, mobility, energy generation, and agriculture.

Earlier, GEAPP or the Global Energy Alliance for People and Planet said it was to partner with the Indian Railways to support their solarisation of transport, with Ashoka University to develop knowledge documents and research papers for policymakers, and Mahatma Phule Renewable Energy & Infrastructure Technology Limited (MAHAPREIT) to build the Waste to Energy (WTE) and Compressed Biogas (CBG) market. The partnership with MAHAPREIT targets the implementation of solar projects of 1000 MW across the state of Maharashtra.

"Want to be featured here or have news to share? Write to info[at]saurenergy.com