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IFC makes debt investment in microfinance lender CreditAccess Grameen

In July last year, Bengaluru-based CreditAccess Grameen raised $25 million, or about  ₹187 crore, in external commercial borrowings. Premium
In July last year, Bengaluru-based CreditAccess Grameen raised $25 million, or about 187 crore, in external commercial borrowings. 

  • CreditAccess operates in 14 Indian states and one union territory through 1,635 branches and has a borrower base of 3.8 million women. The microlender had a gross loan portfolio of $2.2 billion and a net worth of $543 million as of March 31

NEW DELHI: International Finance Corp. (IFC), the private investment arm of the World Bank, has proposed to make a debt investment of up to $50 million (around 423 crore) in listed microfinance firm CreditAccess Grameen Ltd.

"The proposed IFC investment comprises a senior debt investment of up to $50 million in CreditAccess Grameen Limited (CAGL) for a 3-year tenor. The proceeds will be used towards expanding the company’s portfolio to female borrowers for income generation purposes, specifically in the low-income or rural areas of India," a disclosure by IFC mentioned.

Targeted for on-lending to straight senior loans and syndications, IFC’s investment in CreditAccess will support resilience among microfinance institutions in the market by providing comfort to other local and international investors, according to the former’s disclosure.

In July last year, Bengaluru-based CreditAccess Grameen raised $25 million, or about 187 crore, in external commercial borrowings (ECBs) from Sweden’s development finance institution Swedfund International AB, VCCircle reported.

Earlier this month, the company reported trebling of its Q4FY22 consolidated net profit to 160 crore from 56.3 crore a year ago. Net interest income and pre-provisioning operational profit rose 12.1% year-on-year to 520 crore and 369 crore, respectively. The microfinance lender’s gross loan portfolio and disbursements for the final quarter of FY22 were also up more than 22% each year-on-year.

CreditAccess operates in 14 Indian states and one union territory through 1,635 branches and has a borrower base of 3.8 million women. The microlender had a gross loan portfolio of $2.2 billion and a net worth of $543 million as of March 31.

Last month, VCCircle had reported that IFC has committed at least $35 million in homegrown Motilal Oswal Private Equity's (MOPE) fourth fund, which is sized at over $588 million ( 4,500 crore).

In August last year, Kandla International Container Terminal Private Limited (KICT), a part of the JM Baxi Group and 100% held by International Cargo Terminals & Infrastructure, received senior debt loan of up to $30 million from IFC.

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