IFC to lend $100 million to Federal Bank for Gujarat’s Gift City branch
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Mumbai: International Finance Corporation (IFC) Wednesday said it will lend $100 million to Federal Bank Ltd as long-term finance for its International Financial Services Centre (IFSC) branch in Gujarat’s Gift City.
The funding is expected to help the bank’s clients in growing their business and supporting the Gift City initiative.
Federal Bank’s IFSC unit which opened in November 2015 offers funded and non-funded facilities to overseas operations of Indian corporates, loans to overseas business ventures of non-resident Indians, trade finance solutions to Indian clients etc. It has crossed $200 million mark in total business. Kerala-based Federal Bank has 1,252 branches and 1,665 ATMs.
On Wednesday, Federal Bank shares closed at Rs92.55, up 0.76% from its previous close on BSE, touching a high of Rs93.60 and a low of Rs90.75 a share during the day.
The private sector lending arm of the World Bank, IFC has an active direct private equity-style investment practice, apart from lending to companies in India. It also has an active limited partner (LP), portfolio in India where it backs PE and venture capital funds focused on India.
Other recent investments by IFC in the country include $20 million debt to RGVN Microfinance, $3 million to pi Ventures and up to $30.1 million to Mumbai-based ETC Agro Processing (India) Pvt Ltd, among others.