According to the Bank’s website, the proposed investment comprises a senior unsecured loan of up to US$500 million to Axis Bank. The proceeds of the proposed investment will be utilized for supporting Axis to grow its green and blue finance portfolios. The Project is expected to be supported by the Market Accelerator for Green Construction (“MAGC”) Program as described in the Blended Finance Section.

The most significant, expected Project-level outcome is increased access to climate financing, as well as blue financing. Beyond the Project, IFC anticipates that via innovation, demonstration or replication, and capacity-building channels, the Project will promote sustainability by helping develop the global blue financing market. Axis Bank's successful blue loan financing is expected to contribute to growing the market of this relatively new asset class in India, channel long-term finance to foster the sustainable development of the marine economy and water-related activities and combat marine pollution.

The proposed Project entails a senior loan to Axis Bank for on-lending to green (green building, renewable energy, energy efficiency etc.), and blue (water efficiency, treatment, sustainable aquaculture, etc.) projects in India. The Bank is involved in providing long and medium-term financing to corporates, including large ones and MSMEs by way of working capital, term loans, and to lesser extent project and structured finance, and syndications. It also provides several short-term products as well as non-funded products like Bank guarantees.

The Bank has a sizable exposure to companies operating in high-risk E&S sectors such as infrastructure (power, transmission, telecom, mining, ports, harbor, highways etc.), chemicals, heavy industries (cement, iron, and steel etc.), and large plantations. Some of these sectors and industries may have high E&S risks and impacts such as those related to occupational health and safety, environment, community health and safety, biodiversity, cultural heritage, involuntary resettlement, and indigenous peoples. However, IFC’s loan will be utilized for targeted end use as specified above. IFC’s loan will not be used to finance any activities in the Exclusion List, any hydropower project, slum rehabilitation project, any coal related activities or higher risk activities that may include involuntary resettlement, risk of adverse impacts on indigenous peoples, significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, significant retrenchment, or significant occupational health and safety risks. Hence, the E&S risk of the proposed investment is medium, and the Project is categorized as FI-2 according to IFC's Policy on Environmental and Social Sustainability. 

The proposed investment comprises a senior unsecured loan to Axis Bank for US$500 million.

Axis Bank has a diversified shareholding profile, with the largest shareholder being Life Insurance Corporation of India (LIC), the largest insurance company in India, which holds 8.3 percent of Axis. Foreign institutional investors hold 53.4 percent, domestic institutional shareholders hold 31.6 percent, and retail investors hold the remaining 6.6 percent in the Bank.

Axis Bank Limited
Neeraj Gambhir
Group Executive, Treasury, Markets and Wholesale Banking Products
1800-103-5577
corporate.communication@axisbank.com
Axis Bank Limited, Corporate Office, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai 400 025, Maharashtra, India.
www.axisbank.com

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