DBS Bank Reports India as Its Fastest-Growing Sustainable Finance Market in 2025

Sustainability Finance in India: A Growing Opportunity

Global Sustainable Debt Issuance Reaches USD 2.21 Trillion in 2025

According to BloombergNEF, global sustainable debt issuance reached USD 2.21 trillion in 2025, with stability in growth considered positive given the broader macro environment. Asia represents a significant opportunity, with green financing continuing to dominate, while social loans are gaining momentum.

India's Growing Importance in Sustainability Finance

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Countries like India, which offer immense scale, will attract sizable investments into the green space. DBS Bank, Asia's largest bank, sees India as a high-priority market for sustainability finance. In 2025, India was DBS Group's fastest-growing market for sustainable finance and is the bank's third-largest key market for sustainable financing in Asia.

DBS's Approach to Sustainability Finance in India

DBS focuses on renewables and corporate transition projects, particularly where taxonomy alignment is clear. The bank works closely with core clients through consortium structures and is often among the earliest banks to be onboarded for sustainability-linked capex programmes. DBS's differentiation strengthens further when client capital needs extend beyond India, as the bank can tap diversified global investor pools and align them with issuer requirements.

Key Opportunities in India

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Technologies such as Battery Energy Storage Systems (BESS), waste-to-energy, biomass, and biofuels are expected to grow rapidly in India. The country's large waste generation profile makes it well suited for circular bio-energy models. India will increasingly see participation from local and foreign banks, institutional investors, private credit, and family offices.

DBS's Recent Deals in India

DBS has executed several key deals in India, including a transaction with Credila, an onward-lending structure in the education space, and a landmark social bond issuance for BRI, the first social bond of this size issued by a bank in the market. DBS has also incorporated the social lens into KPI-linked formats, with at least two KPIs including transition financing (energy-related) and social impact.