Clix Capital gets USD 20 mn loan for promoting sustainable projects

New Delhi: NBFC firm Clix Capital on Monday said it has signed an agreement with Global Climate Partnership Fund (GCPF) for USD 20 million (about Rs 160 crore) loan.

GCPF is a Luxembourg-based innovative impact investing fund managed by responsAbility Investments AG.

It finances renewable energy and energy efficiency projects across several developing and emerging nations directly and indirectly.

The funding will be earmarked for sustainable projects that help to mitigate climate change, Clix Capital MD and CEO Rakesh Kaul said.

He said the deployment of the fund would be done in the next six to eight months.

The funding would be made to MSMEs, such as suppliers of solar power manufacturers or those engaged in waste management working towards the reduction of carbon emission, he added.

"As climate change mitigation becomes a cross-policy agenda globally, our efforts are aligned to advance sustainable and green lending. As a responsible lender, we are committed to supporting India's green journey via credit support and assisting businesses with CO2 reporting, green lending development, and environmental and social risk management initiatives," he said.

David Diaz Formidoni, head of financial institution investments, responsAbility, said, "Coupling Clix Capital’s expertise in providing credit to unbanked businesses with our mission to promote renewable energy and energy efficiency investments, we are poised to support a transformation in India's sustainable development landscape".

Further, with an exceptional annual surge of 122 per cent, Clix Capital records Rs 1,206 crore as its highest-ever quarterly fundraise since its inception, Kaul said.