US Development Finance Corp lends USD 35 mln to India's CreditAccess Grameen to support women entrepreneurs
Oct 19, 2022
Mumbai (Maharashtra) [India], October 19 : The US government arm Development Finance Corporation (DFC) has signed a USD 35 million loan with Indian microfinance institution CreditAccess Grameen (CAG) with an aim to help 5 lakh women entrepreneurs gain access to credit.
The ceremonial signing was done by DFC's chief executive officer Scott Nathan, who is on a visit to India.
CreditAccess is the largest NBFC-MFI in India, serving nearly 4 million women. This loan by the US corporation will support the expansion of Creditaccess Grameen's microfinance portfolio.
"It is estimated that DFC's loan will help CreditAccess reach an additional 500,000 women in need throughout the life of the loan. CreditAccess is also the first institution to partner with DFC in a new initiative that will aim to increase financial inclusion for marginalized women and will bring more women into employment and leadership in microfinance," DFC said in a statement on Tuesday.
Also, the US corporation has signed an agreement for USD 10 million guarantees of a Rupee loan to Punjab Renewable Energy Systems Private Limited (PRESPL), a biomass supply chain management company.
DFC said the financing would fund the construction of seven biomass briquetting plants and finance the working capital needs of PRESPL, helping to meet India's growing energy needs.
During his Mumbai visit on Tuesday, Nathan engaged with private sector leaders advancing strategic social and economic development in India and the Indo-Pacific region.
Nathan met India Export-Import Bank of India (EXIM Bank) Managing Director Harsha Bangari. The two discussed the importance of the continued partnership between DFC and EXIM Bank under the Quad and current and future collaborations with fellow Quad development banks across key sectors such as clean energy, digital connectivity, and supply chains.
Also, Nathan met with Sujoy Ghosh, India Country Head for First Solar, Inc. DFC financing supports First Solar's vertically integrated photovoltaic (PV) solar module manufacturing facility in Tamil Nadu, India, with a projected annual capacity of 3.3 gigawatts. The facility is diversifying solar supply chains for renewable energy projects in the region.
DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. It invests across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets.
