ADB invests US$25 million in Vivriti Capital's first climate bond to boost renewable energy and EV infrastructure

Vivriti Capital Limited (VCL), a prominent tech-enabled mid-market NBFC, has secured financial assistance from the Asian Development Bank (ADB) consisting of a senior secured debt facility amounting to $25 million[cite: 164]. The climate bond debt facility, issued in its Indian Rupee equivalent, features a 4-year tenor and is dedicated to the Vivriti Capital Climate Finance Project[cite: 162, 165].

This transaction marks a historic double milestone: it stands as ADB's first climate bond investment in India, as well as the first certified climate bond issuance by any private-sector NBFC within the country, substantially boosting VCL's expanding green finance portfolio[cite: 166].

Strategic Impact Highlights

• Decarbonisation Focus: The partnership directly bolsters business segments that are critical to fulfilling India's long-term decarbonisation targets[cite: 167].
• Inclusive Lending: In tandem with environmental goals, the project explicitly aims to extend financial credit and options to enterprises led or owned by women[cite: 167].
• EV Allocation: A significant portion, amounting to at least 30% of the aggregate fund, is dedicated exclusively to financing the EV ecosystem[cite: 163, 169]. This includes developing charging stations, battery swapping stations, and on-lending to retail borrowers for the purchase of new EVs[cite: 163, 169].
• Capital Market Development: Beyond project execution, the climate bond helps bridge a massive localized market gap while advancing institutional participation in green capital instruments[cite: 173].

Fund Deployment Areas

The proceeds generated from this transaction are being deployed systematically across key high-impact sustainability domains, including:

• Renewable Energy Generation: Capitalizing scalable solar and wind energy production operations[cite: 168, 175].
• Electric Vehicle Ecosystem: Expanding retail credit paths and localized infrastructure support to curb road transport emissions, which generate up to 30% of urban air pollution in India[cite: 169, 174].
• Waste Management: Financing essential environment-focused waste sorting, processing, and handling capabilities[cite: 168].

"This significant investment from the Asian Development Bank highlights our steadfast commitment to driving sustainability. As India embarks on its ambitious journey to reduce carbon emissions by one billion tons by 2030 and achieve net zero by 2070, substantial financial resources are essential. The support from the Asian Development Bank will enable us to further contribute to this national objective. By directing these funds into strategic loans for electric vehicles and renewable energy projects, we aim to catalyze sustainable economic growth, creating a multiplier effect in the economy." — Parth Sanghani, Chief Treasury Officer at Vivriti Capital

Underwriting and Portfolio Capabilities

Leveraging its established Green Finance Framework, VCL is strongly positioned to funnel this green capital efficiently toward underserved segments[cite: 176, 180]. VCL utilizes specialized cash flow-based underwriting models, rapid turnaround timeframes, and streamlined digital structures to support micro, small, and medium-sized enterprises (MSMEs), mid-market corporations, and retail consumers[cite: 178, 179].

"Climate bonds can bridge the large market gap for climate finance in India while supporting development of the capital market. This partnership with Vivriti Capital Limited allows ADB to support scalable and commercially viable renewable energy projects and promote decarbonization of road transport, which accounts for up to 30% of urban air pollution in India." — Suzanne Gaboury, Director General for Private Sector Operations at ADB

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Notes to Editors

About Vivriti Capital

Vivriti Capital is a leading fintech NBFC that aims to bring necessary debt finance to hundreds of mid-market enterprises across India[cite: 182]. Over 7 years since inception, Vivriti Capital has built a highly successful franchise, commanding a portfolio of more than INR 7,800 crores and serving 400+ clients across 45+ sectors and 20+ states[cite: 183]. Vivriti's combined portfolio has witnessed stellar metrics, with industry-leading asset quality and return metrics, alongside raising INR 1,400 crores of equity since inception[cite: 184, 185].

About ADB

The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty[cite: 188]. Established in 1966, it is owned by 68 global members—49 of which are located within the region[cite: 189].

For more details, visit www.vivriticapital.com and www.adb.org.