Ecofy Finance Pvt. Ltd. (Ecofy),India’s green-transition-focused NBFC, has secured a US$ 12.5-million long-termloan facility from the Investment Fund for Developing Countries (IFU), adevelopment finance institution owned by the Government of Denmark. Ecofy aimsto address the critical last-mile climate finance gap in India's consumer,transportation, and small business sectors.

With ambitious targets, the NBFCplans to finance over 1.0 million electric vehicles and more than 1.5 GW ofrooftop solar within the next 6-7 years. This will support decarbonisation ofthe transportation sector and power consumption of households and smallbusinesses in India.

A part of the financing providedby IFU would be directed towards individuals and SMEs, who typically findtraditional financing channels less accessible and, therefore, to a largeextent are excluded from acting as green consumers.

The financing from IFU, structuredas long-term debt capital, is part of the green strategic partnership betweenIndia and Denmark, which was established in 2020 when the prime ministers ofboth nations signed the agreement.

Axis Bank acted as the exclusivefinancial advisor to Ecofy for the transaction.