- BII invested over $300 million in Indian climate finance, including renewable energy, electric mobility and sustainable agriculture in 2022.
- BII’s current portfolio in India is valued at $2.2 billion in over 290 businesses.
British International Investment (BII), the United Kingdom government’s development finance institution, plans to invest about $1 billion in Indian climate-related projects by 2026. A top official disclosed this to Reuters, adding that BII is drawn to the country’s expanding renewable energy capacity.
The Chief Executive Officer of BII, Nick O’Donohoe, said the firm is evaluating exciting businesses in sectors such as biofuels and circular economy as part of the vision for the 2030 roadmap agreed between India and the UK. In India, BII invested over $300 million in climate finance last year in sectors such as renewable energy, electric mobility and sustainable agriculture.
The firm’s current portfolio in India is valued at $2.2 billion, with investments in over 290 businesses. Last year, BII agreed to invest up to $250 million in automaker Mahindra and Mahindra Ltd’s new electric vehicle unit. The BII boss, citing buoyant stock markets and a stable political environment in the country, said, “India has produced the best returns of any geography we have invested in. BII wants to invest in new entrepreneurs and companies struggling to raise funds for emission-cutting projects.”
He stated that on total portfolio investment, the company got 5 per cent in annual return over a rolling 7-year period, declining to give details on returns on Indian investments. He, however, said the Indian economy was going through a “good phase” compared with BII’s investments in some African nations, where high debt, inflation and weakening currencies had impacted returns. The company has about 8.2 billion pounds ($9.98 billion) worth of assets through its investments in around 1,500 businesses in emerging economies across 65 countries.