Private sector lender YES Bank, today said that it has availed an $25-million term loan from the US-based Wells Fargo Bank.
This loan will be exclusively used to finance the small-and-medium enterprise (SME) clients of YES Bank and guaranteed by the Overseas Private Investment Corporation (OPIC), an agency of the US Government, a press release issued here stated.
"This is a first-of-its-kind in India structure, wherein OPIC is partially guaranteeing the loan to Wells Fargo. OPIC helps US businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment and supports US foreign policy," the release said.
The facility will further enhance YES Bank's SME portfolio and provide credit products to its clients at competitive rates.
YES Bank Managing Director & CEO Rana Kapoor said: "YES Bank is privileged to avail the loan guaranteed by OPIC. This further reaffirms the confidence reposed by global financial institutions in YES Bank."
The Indian private sector bank's SME proposition offers a range of products and services, which includes cash management solutions, payment solutions, trade services, working capital and term financing and net banking.
"The loan will further strengthen YES Bank's SME portfolio and will further augment the genuine business requirements of our clients," Kapoor said.
Wells Fargo Global Financial Institution Executive Vice-President and Group Head Charles H Silverman said: "Wells Fargo is strongly committed to supporting financial institutions in India by providing a full range of credit and non-credit products...And we are pleased to be the first bank to bring this OPIC programme to India."
Wells Fargo & Company is a nationwide, diversified, community-based financial services company with $1.2 trillion in assets.
It provides banking, insurance, investments, mortgage and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, internet and other distribution channels across North America and world-wide.
