GEF SOUTH ASIA GROWTH FUND III

Equity participation in a private equity fund investing in small and medium-sized enterprises (SMEs) that promote climate action and environmental sustainability primarily in India, but also in other countries in the South Asia/South East Asia region.

Equity participation in a private equity fund investing in SMEs that promote climate action and environmental sustainability primarily in India, but also in other countries in the South Asia/South East Asia region.

The operation concerns an investment in GEF South Asia Growth Fund III, a USD 300m investment fund targeting companies that promote climate action and environmental sustainability in South and South East Asia , in line with the objectives of the EIB Climate Bank Roadmap. The Fund will provide equity to SMEs, improving access to finance. A commitment to the Fund will contribute to EU policy and priorities with regards Climate Action outside of Europe. It will support the achievement of sustainable development goals (SDGs), aiming to mitigate the effects of climate change. The Fund will contribute to the Bank's Climate Action and Environmental Sustainability targets outside the EU. Therefore, the operation is proposed under the Climate Action and Environment Facility (CAEF). The EIB commitment is expected to trigger the commitment from other investors and to have a strong catalytic effect. With EIB commitment, the Fund's terms are expected to be negotiated in line with best market practice standards.

The fund's operational guidelines will provide for environmental and social duediligence of investee companies according to guidelines acceptable to the Bank.

The Fund is expected to comply with EIB's procurement guidelines.

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