CreditAccess Grameen raises US $35 million ESG-linked loan from US DFC

19 Oct 2022 , 01:47 PM

CreditAccess Grameen Limited, India’s largest Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI), signed a Loan Agreement with the United States International Development Finance Corporation (DFC), the United States Government’s development finance institution, on October 17, 2022, in Bangalore, India.

CA Grameen will borrow a US$35 million ESG-linked loan for up to seven years under the External Commercial Borrowing (ECB) route under the terms of the agreement.

The direct loan from DFC to an NBFC-MFI is one of the first of its type in India. This demonstrates greater trust and commitment by international investors, financial institutions, and foreign governments to India’s microfinance industry’s long-term growth possibilities.

The financing facility will also emphasise performance goals aligned with ESG principles in order to boost women’s entrepreneurship and leadership.

The deal represents CA Grameen’s second ESG-linked loan, as the company continues to see increased interest from global financial institutions interested in supporting ESG-compliant firms and believers in the microfinance success story, said the company in its press release.

CA Grameen has continually proved a positive social effect through its extensive rural presence over the past two decades by training and financially supporting a class of women entrepreneurs and improving communities over numerous macroeconomic cycles.

At around 1.49 PM, CreditAccess Grameen was trading at Rs976.90 up by 3.77% from its previous closing of Rs941.40 on the BSE. The scrip touched intraday high and low of Rs985.90 and Rs940.55 respectively.

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