EIB Global commits USD 60 mn to India Energy Transition Fund

New Delhi, Oct 14 (PTI) EIB Global, the development arm of the European Investment Bank (EIB), on Tuesday committed USD 60 million investment in the India Energy Transition Fund managed by EAAA Alternatives, which is targeting USD 300 million equity funding in the domestic renewable energy sector.

A formal agreement was signed between EAAA Alternatives and EIB in the national capital.

EIB Global is investing up to USD 60 million in the India Energy Transition Fund, which is a new greenfield infrastructure fund that will accelerate private capital investment and support decarbonisation efforts in India, EIB Vice-President Nicola Beer said.

It is India's first energy transition fund managed by a domestic fund manager, she said.

"India is one of Europe's most important partners in the global green transition. By joining forces with the India Energy Transition Fund, we are helping to accelerate renewable energy, strengthen energy security and affordability and unlock sustainable infrastructure investment across the country," Beer said.

The fund has a target size of USD 300 million and will channel equity and quasi-equity into greenfield infrastructure projects and growth-stage companies. Most commitments will go to climate action and environmental sustainability, including renewable energy, energy efficiency, transmission, battery energy storage and electric vehicles, including potentially supporting circular economy sectors, such as recycling and wastewater management, EAAA Alternatives CEO Subahoo Chordia said.

Replying to a query, he said that out of USD 300 million, USD 163 million has already been raised from family offices and other investors besides EIB, which holds the largest share in the fund.

EAAA Alternatives looks to raise the entire USD 300 million over the next 4-5 years, Chordia said, adding that another USD 200 million will be raised later.

"By providing growth equity, the fund will help unlock projects under development, accelerate new capacity addition and support companies pioneering clean energy and decarbonisation solutions. The initiative also intends to create opportunities for technology and investment flows between India and the European Union," he said. PTI ABI ABI BAL BAL