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Business News/ Companies / News/  CreditAccess Grameen raises $35 mn ESG loan from US International Development Finance Corp
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CreditAccess Grameen raises $35 mn ESG loan from US International Development Finance Corp

The loan facility will also focus on performance targets linked to ESG principles to strengthen women’s entrepreneurship and leadership.

The transaction marks the second ESG-linked loan for CA Grameen. (File Photo: Mint)Premium
The transaction marks the second ESG-linked loan for CA Grameen. (File Photo: Mint)

MUMBAI: Microlender CreditAccess Grameen Ltd on Wednesday said it has signed an agreement with US International Development Finance Corp. (DFC), the US government’s development finance institution, for a $35 million ESG-linked loan for up to seven years through the external commercial borrowing (ECB) route.

The direct loan, CreditAccess said, is one of the first of its kind for DFC to a non-banking financial company microfinance institution (NBFC-MFI) in India. This reflects the increased confidence and commitment shown by international investors, financial institutions, and foreign governments in the long-term growth prospects of India’s microfinance industry, it said in a statement. The loan facility will also focus on performance targets linked to ESG principles to strengthen women’s entrepreneurship and leadership.

The transaction marks the second ESG-linked loan for CA Grameen.

Udaya Kumar Hebbar, managing director and chief executive, CreditAccess Grameen, said that the, “Indian microfinance industry, being a global leader, has all the building blocks required to grow sustainably and is well-placed on the ESG front."

“The long-term foreign borrowings strengthen our liability strategy by diversifying our geographical risk as well as achieving a stronger asset-liability position to delivering sustainable growth over the longer term," said Hebbar.

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Published: 19 Oct 2022, 05:35 PM IST
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