CreditAccess Grameen raises US$35 million ESG-linked loan from U.S. International Development Finance Corporation (DFC)
Mumbai : CreditAccess Grameen Limited the largest Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI) in India, has signed a Loan Agreement on October 17, 2022 at Bangalore, India, with U.S. International Development Finance Corporation (DFC), the U.S. Government’s development finance institution. Under the agreement, CA Grameen will borrow a US$35 million ESG-linked loan for up to seven years through the External Commercial Borrowing (ECB) route. The direct loan is one of the first of its kind for DFC to an NBFC-MFI in India. This reflects the increased confidence and commitment shown by international investors, financial institutions, and foreign governments in the longterm growth prospects of India’s microfinance industry. 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 as it continues to witness rising interest from global financial institutions focused on funding ESG-compliant businesses and believers of the microfinance growth story. Over the past two decades, CA Grameen has consistently demonstrated a positive social impact through its deep rural presence by grooming and financially supporting a class of women entrepreneurs and transforming communities across multiple macroeconomic cycles.
“We are humbled to have the support of such a pedigreed lender who has reposed faith in us and shares a common development agenda of empowering women from the bottom of the pyramid. The Indian microfinance industry, being the global leader has all the building blocks required to grow sustainably and is well placed on the ESG front.” Further, he added, “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 ” Udaya Kumar Hebbar, MD & CEO, CreditAccess Grameen Ltd. said.