Electronica Finance Ltd, which provides loans to micro, small and medium enterprises, has raised $15 million (Rs 124 crore) in debt from impact investor Global Climate Partnership Fund (GCPF).
The financing provided under the deal will be for six years, the Pune-based non-banking financial company (NBFC) said Monday.
Electronica plans to use the funds to finance energy-efficient machines that will lead to a reduction in carbon dioxide and greenhouse gas emissions by 20-30%, the company said in a statement.
It will also invest in promoting rooftop solar installations.
Luxembourg-based GCPF was set up by the German Federal Ministry for Economic Affairs and Climate Action, German development bank KfW and World Bank Group’s International Finance Corporation in 2009.
It backs companies in renewable energy and energy efficiency projects worldwide, both through direct funding and indirect support. To date, it has made investments in 27 countries.
The fund is managed by Swiss investor responsAbility Investments AG. The fund is a public-private partnership that aims to mitigate climate change through a reduction of greenhouse gas emissions in emerging and developing markets.
Shilpa Pophale, managing director and CEO at Electronica, said the lender acts as a financing partner to micro, small and medium-sized enterprises by helping them access energy-efficient machines and renewable energy solutions like rooftop solar.
David Diaz Formidoni, head of financial institution investments and climate finance at responsAbility Investments, said Electronica’s commitment to sustainable lending practices makes it an ideal partner for the fund.
Apart from Electronica, the GCPF recently signed an agreement to invest $20 million in NBFC Clix Capital, which provides collateral-free online personal loans as well as business loans.
