IFC commits $400 mn to Bajaj Finance to help boost finance, empower women

IFC, a member of the World Bank Group, has committed $400 million (about Rs 3,300 crore) to help expand access to finance for customers opting to buy EVs and energy efficient consumer goods as well as support women-owned microenterprises.

This $400 million support is part of the $1 billion fundraising exercise by Bajaj Finance Ltd (BFL).

The funding aims to increase competitiveness in the climate finance market, support the country's climate goals, and promote financial inclusion, a joint statement said on Wednesday.

IFC's $400 million loan will enable BFL to expand access to finance for customers opting to buy EVs, including two-wheelers, three-wheelers and four-wheelers, and strengthen its presence in the energy efficient consumer goods (EECG) space.

"Accelerating climate financing is crucial for India to meet its net-zero goals. IFC's investment in Bajaj Finance will boost market competition, inspiring other NBFCs and investors to expand their financing for energy-efficient solutions, e-mobility, and microfinance," Imad N Fakhoury, Regional Director for South Asia, IFC, said.

Together with Bajaj Finance, a like-minded partner, we are fully committed to accelerating green growth for the country, while also empowering women and closing the gender gap, he said.

Sandeep Jain, Chief Financial Officer & Chief Operating Officer, BFL said, "responsible business practices, driven by our ESG principles, are foundational to how we do business."  India is the world's third-largest energy-consuming nation.

As the country rapidly develops its energy sector, millions of households are expected to buy new appliances, air conditioners, and vehicles, it said.

By 2050, the demand for air conditioners is expected to rise nine-fold, increasing greenhouse-gas emissions significantly, it said.

The household appliances market in India is further estimated to be $59.19 billion in 2024 and projected to grow annually at 7.35 per cent, it said.