Asian Development Bank Signs Deal with SK Finance to Boost Female Entrepreneurship and EV Financing in India
Deal News | Dec 18, 2024 | Asian Development Bank
The Asian Development Bank (ADB) has entered into a $100 million financing agreement with SK Finance Limited, a prominent non-banking financial company in India known for vehicle and MSME loans. This strategic partnership is aimed at enhancing financial access for women-owned micro, small, and medium enterprises (MSMEs) and bolstering electric vehicle (EV) financing within India—a crucial step towards promoting sustainable and inclusive economic growth. The funding will be disbursed in two tranches, with at least 20% allocated to EV financing and up to 80% for onlending to MSMEs, particularly women-led businesses. ADB's initiative aligns with India's climate objectives, recognizing the pivotal role MSMEs play in the economy by employing over 110 million workers and contributing significantly to GDP and exports. It also addresses the estimated $1 trillion annual financing gap faced by these enterprises. The project, announced by ADB Director General for Private Sector Operations Suzanne Gaboury, is set to support India's transition to electric mobility and underscore the banks commitment to financial inclusion and environmental sustainability.
Sectors
- Financial Services
- Energy & Transportation
Geography
- India – The financing and support by ADB and SK Finance are focused on enhancing financial accessibility and promoting EV adoption in India.
- Asia-Pacific – ADB's operations and strategic commitments are focused on advancing progress in the Asia-Pacific region.
Industry
- Financial Services – The article discusses a financial agreement between ADB and SK Finance focusing on providing loans and financial services to women entrepreneurs and the EV sector in India.
- Energy & Transportation – Relates to EV financing as part of the initiative to transition to sustainable transport and reduce carbon emissions in India.
Financials
- $100 million – The total financing amount provided by ADB to SK Finance for promoting financial access to MSMEs and EV financing.
- 20% – Proportion of the $100 million financing allocated for electric vehicle (EV) financing.
- 80% – Proportion of the $100 million financing allocated for onlending to MSMEs, with a significant focus on women-operated businesses.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Asian Development Bank (ADB) | Financer | Company | A multilateral development bank committed to promoting social and economic development in the Asia-Pacific region. |
| SK Finance Limited | Target Company | Company | A leading nonbank financial company in India specializing in vehicle and MSME loans. |
| Suzanne Gaboury | ADB Director General for Private Sector Operations | Person | Provides insights into the strategic priorities and benefits of the financing agreement. |
| Rajendra Kumar Setia | Managing Director and CEO of SK Finance | Person | Expressed commitment to expand financial outreach to women entrepreneurs and promote EV financing. |