The investment will support the bank’s commitment to environmental, social, and governance standards, while strengthening its Tier 1 capital adequacy capability (CAR) and expanding SMEs with climate change mitigation.
The Federal Reserve said on Thursday that the World Bank’s IFC funds will increase funding for green projects for projects related to energy, renewable energy, agriculture -smart, greenhouse, and waste management.
IFC and the two investment funds managed by the IFC Asset Management Company – IFC Financial Institutions Growth Fund, LP and IFC Investment Asia Fund, LP – have made capital of $ 126 million (the US $ 916 million) for a stake of 4, 99% in the capital of Kerala lender.
The investment will support the bank’s commitment to environmental, social, and the governance standards, while strengthening its Tier 1 capital adequacy capability (CAR) and expanding SMEs with climate change mitigation.
Shyam Srinivasan, MD, and CEO of Federal Bank said: “After the bank’s board of directors approved the issuance of shares to IFC’s portfolio at the rate of 4.99% of the bank’s pay-to-date. headquartered, IFC has become an important investor. The addition of this brand name to our list of prominent investors strengthens the IFC Group’s confidence in the bank and its management. Efficient investment management further strengthens the banking level 1 and overall CAR. ”
In addition, the investment also marks the first IFC green IFC, in line with the green road, which will allow the bank, the IFC partner for more than a decade, to reduce its coal emissions and increase you can borrow it.
“This move is in the line with IFC’s plan to support green growth by the encouraging investment to return better and more efficiently, taking advantage of the opportunities to help India achieve its goals. the weather and build a more prosperous and more resilient future. ” Roshika Singh, deputy head of state said. for IFC in India. “The investment is also expected to create tens of thousands of jobs, and small and medium-sized businesses to have opportunities to invest heavily, which will help ensure a return.”
IFC has projected a total of $ 3 billion smart investment in India by 2030.
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