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CreditAccess Grameen shares rise after raising $35 million from US International DFC

CreditAccess Grameen shares rise after raising $35 million from US International DFC

CreditAccess Grameen shares rise after raising $35 million from US International DFC
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By CNBCTV18.com Oct 19, 2022 5:18:37 PM IST (Published)

This is the second ESG-linked loan for the company.

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CreditAccess Grameen Limited on Wednesday said it has signed an agreement with the United States International Development Finance Corporation (DFC) to raise $35 million through a loan facility.


The sustainability-linked loan is for up to seven years through the external commercial borrowing (ECB) route. External Commercial Borrowings refers to the debt raised by an eligible entity in India solely for commercial purposes from an external source, meaning an entity outside of India.

The loan facility will also focus on performance targets linked to ESG principles, to strengthen women’s entrepreneurship, and leadership. This is the second ESG-linked loan for the company.

CreditAccess Grameen is a non-banking financial company-micro finance institution (NBFC-MFI). The direct loan is one of the first of its kind from 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 long-term growth prospects of India’s microfinance industry,” the company said.

The company further said that the long-term foreign borrowing strengthens its liability strategy by diversifying its geographical risk as well as achieve a strong asset-liability position.

Shares of CreditAccess Grameen ended 2.8 percent higher at Rs 968. The stock has gained over 60 percent this year.

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