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  • Declaration of strategic partnership between Japan International Cooperation Agency (JICA) and SBICAP Ventures Ltd (SVL) for private sector

    Published on March 2, 2022

    • Strengthen collaboration between JICA and SVL to support for climate action, environmental sustainability, and social sectors in India
    • JICA and SBI Group coming together to strengthen their partnership for private sector through SVL SME Fund (Neev II Fund)
    • JICA investment in Neev II Fund one of its first private equity fund operations in India- An SME fund focused on climate action, environment sustainability and social impact in India- from SBICAP Ventures Ltd (SVL)
    • Neev II Fund will invest in Indian SMEs offering solutions critical to the success of global climate action

    The SVL-SME Fund (Neev II Fund) has been launched by SBICAP Ventures Limited as an initiative for investing equity into high-impact climate action, sustainability, and social impact businesses especially for SMEs – Small and Medium Enterprises- in India. The Neev II Fund currently has global and domestic investors including the EIB, FCDO, SIDBI, SRI Fund and the SBI Group as sponsors.

    The Fund is rapidly adding global investors to its cohort and has unlocked a pool of private equity capital from JICA – Japan’s International Cooperation Agency in December 2021.

    On 24 December 2021, Japan International Cooperation Agency (JICA) concluded a 2.14 billion Indian rupee (approximately 3.2 billion yen) investment agreement with the SVL-SME Fund (commonly known as Neev II Fund), whose fund manager is SBICAP Ventures Limited (SVL), a subsidiary of India’s largest state-owned bank, State Bank of India (SBI). JICA’s investment will be appropriated for investment in small and medium-sized enterprises (SMEs) that are engaged in solving social and environmental issues in India.

    With the addition of JICA, Neev II Fund presents an opportunity for developing a strong Japan – India corridor, with the SBI Group at the forefront is focused on the SME space and further strengthening existing ties between the two countries.

    The fund has committed to two cutting edge companies- Chakr Innovation, a leading clean-tech company combating climate change by using their proprietary technology to reduce emissions from diesel generator sets and GPS Renewables, a leading bio-energy technology and project integration company.

    On 7 February 2022, SBICAP Ventures Limited received Tokyo Financial Award (ESG Investment Category) for Neev Funds. The award ceremony was held for the “Tokyo Financial Award” which was established by the Tokyo Metropolitan Government in 2018 to boost the city’s presence as an international financial center.

    SBI has been present in Japan since 1980, with the aim to strengthen Indo-Japanese business ties with focus on corporate business from both sides offering a wide range of loan products, such as trade finance, project finance, other customized products suited to the term and structure required for the purpose, apart from the related Forex products and deposit products both for Corporates and Individuals.

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