The Overseas Private Investment Corporation (OPIC) and IndusInd Bank on Friday executed a finance agreement for a $225 million loan supporting the expansion of the bank's micro, small, and medium enterprise (MSME) lending programs across India.
At least 25 percent of the proposed facility will support women entrepreneurs and reach previously unbanked populations. This eight-year loan is part of the agency's commitment to supporting $1 billion in loans to underserved small and medium enterprises in India.
"Fostering access to finance opportunities for women entrepreneurs and MSMEs is important for increasing higher economic output throughout India," said acting OPIC President and Chief Executive Officer Dev Jagadesan.
"OPIC recognizes the positive impact supporting women entrepreneurs can have in a community. We are proud to partner with IndusInd Bank to expand access to critical financial services," he added.
Speaking in the occasion, Romesh Sobti, Managing Director and Chief Executive Officer of IndusInd Bank, said: "This agreement with OPIC will help IndusInd Bank to further enhance our MSME lending franchise, thus providing the impetus to some of the major growth drivers of our economy. This also marks a significant milestone for the Bank as it helps us reach out to a new class of global investors to drive our growth."
IndusInd Bank, a private bank headquartered in Mumbai, India, reaches MSMEs across broad and diverse industries. MSMEs are an important segment of the Indian economy, but are often constrained by a lack of access to capital. This OPIC loan will support IndusInd Bank in increasing its MSME lending.
Wells Fargo Bank also signed a $20 million finance agreement at the event supporting IndusInd Bank's MSME lending, which will include at least 25 percent dedicated to women entrepreneurs.