OPIC Provides $5 Million in Financing to Grameen Impact Investments India
June 11, 2018
(OPIC)
WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC)
announced that $5 million in local currency financing has been mobilized to
Grameen Impact under an OPIC loan guaranty agreement with India’s IndusInd
Bank. The financing was deployed through IndusInd’s Impact Investing division,
which will support Grameen Impact’s lending to local small and medium
enterprises.
The guaranty from OPIC, the U.S. Government’s development finance institution,
enabled the Bank to disburse an equivalent loan of 335 million rupees to Grameen
Impact. This eliminates foreign exchange rate fluctuation risk from the balance
sheet of Grameen Impact, a major challenge faced by borrowers in emerging
markets. Grameen Impact is a non-bank financial institution backed by Grameen
Capital India, whose shareholders include leading domestic as well as global
impact investors. Grameen Impact will use the financing to make loans to high
impact social enterprises in India in sectors including financial services,
affordable healthcare, affordable education, renewable energy and sustainable
agriculture.
“OPIC has a strong commitment to impact investing. By supporting lending to
high-impact businesses in local currency, this project will help businesses in
India overcome one of the main challenges to obtaining financing,” said Ray W.
Washburne, OPIC President and CEO.
"Specialized financial institutions like Grameen Impact bring an in-depth
understanding of the impact investing ecosystem, and IndusInd provides liquidity
support and helps them build scale. Together partnerships like these create the
most meaningful impact on the social enterprise landscape in India," said Roopa
Satish, Head Corporate and Investment Banking, IndusInd Bank.
"India has rapidly become a global leader in impact investing, with over $5
billion of investments in this space. However, the bulk of this is equity; even
today social enterprises struggle to raise debt financing, which is critical for
scale. Grameen Impact India is delighted to partner with OPIC and IndusInd in
furthering our commitment to build a ‘capital-with-a-conscience’
ecosystem,” said Royston Braganza, CEO of Grameen Impact Investments.
Grameen Impact’s support for microfinance institutions, social enterprises and
small business lenders helps create local jobs and promote economic growth in
India, where an estimated 30 percent of the population lives below the official
poverty line and most adults lack access to formal financial services.
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