IndusInd Bank to raise $225 mn to expand MSME lending in India
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Washington: The IndusInd Bank has entered into an agreement with Overseas Private Investment Corp. (OPIC) to raise $225 million loan to support expansion of its micro, small and medium enterprise lending programmes across India.
At least 25% of the proposed facility will support women entrepreneurs and reach to populations who previously had no access to banking facility. The eight-year loan is part of the bank’s programme to support $1 billion in loans to undeserved small and medium enterprises in India, a statement said on Thursday.
“Fostering access to finance opportunities for women entrepreneurs and micro, small and medium enterprise (MSME) is important for increasing higher economic output throughout India,” said acting OPIC president and chief executive officer Dev Jagadesan. “This agreement with OPIC will help IndusInd Bank to further enhance our MSME lending franchise, thus providing the impetus to some of the major growth drivers of our economy.
“This also marks a significant milestone for the Bank as it helps us reach out to a new class of global investors to drive our growth,” said Romesh Sobti, managing director and chief executive officer of IndusInd Bank.
The OPIC loan will support IndusInd Bank in increasing its MSME lending. Wells Fargo Bank also signed a $20 million finance agreement at the event supporting IndusInd Bank’s MSME lending, which will include at least 25% dedicated to women entrepreneurs, a statement said. PTI