(Ecofin Agency) - The multi-currency green loan program will support 10 to 15 green micro, small and medium enterprises in Africa, South, and Southeast Asia.
The British International Investment (BII), formerly known as CDC Group, announces subscription to a US$75 million Green basket bond arranged by Symbiotics, a platform dedicated to financing SMEs and low-income households in emerging and frontier markets. The bonds announced, Tuesday (June 14), were issued to finance green projects in Africa, South, and Southeast Asia.
“Symbiotics is delighted to structure its first green basket bond in partnership with BII. Adding green use of proceeds to our emerging market investments will broaden the impact of our funding in addressing different Sustainable Development Goals (SDGs). This innovative product will also increase the awareness of climate finance in emerging markets and support financial institutions in further developing and managing their green product range,” commented Daniel Schriber, Head of Investments at Symbiotics.
The green basket bond is the first of its kind issued in BII's markets, covering the African continent and ten other countries around the world. The multi-currency green program will support 10 to 15 micro, small, and medium-sized enterprises that require less investment capital than BII is typically able to finance directly.
Loans under this program will help finance small-scale green projects such as “rooftop solar panels, sustainable agriculture, energy-efficient appliances including clean cookstoves, energy efficiency improvements to buildings, electric vehicles, and more,” BII explains in a release. BII will also provide an additional US$520,000 for technical assistance to support the growth of selected green projects and businesses.
Through the initiative, BII and Symbiotics want to help improve access to climate financing for entrepreneurs and businesses developing green projects. The program will also build MSMEs' ability to identify and manage climate assets.