New Delhi, Dec 24 (KNN) The private sector lender, YES Bank, will use USD 150 million it raised from International Finance Corporation (IFC), Washington, a member of the World Bank Group, to increase credit flow to the small and medium enterprise (SME) and create jobs.
“YES BANK, India’s fourth largest private sector Bank, has raised USD 150 million from IFC, Washington a member of the World Bank Group, for tenor of up to 7 years. The loan will be used by YES BANK to scale up its small and medium enterprise loan portfolio,” YES Bank said in an official statement.
YES Bank Managing Director and CEO, Rana Kapoor yesterday said that, "Through this significant foreign currency loan and long tenor facility, we aim to achieve our longer term goals of further reaching out, diversifying and expanding our SME loan book.
“The facility demonstrates YES Bank's ability to draw long tenure funds from global banks and institutions who have partnered IFC under this loan facility,” he added.
The financing package to YES Bank includes USD 45 million provided through IFC's new co-lending programme, in addition to its own account loan of USD 60 million — both for a period of seven years.
Another USD 45 million syndicated loan has been provided by Intesa Sanpaolo, Bank Muscat, Doha Bank and AKA Frankfurt for a tenor of two years. YES Bank has swapped the loan with the Reserve Bank of India (RBI) through the concessional swap window offered to banks.
"Increasing financial access to micro, small and medium enterprises directly supports job creation, a top priority for IFC in India. The investment shows our commitment to support under-served and unbanked women business owners, who generate significant social and economic benefits," said IFC director for South Asia, Serge Devieux.
Last year, IFC provided a USD 75 million loan to help YES Bank expand its network to reach underserved people, small businesses, and agricultural borrowers in India.