)
YES Bank on Monday said it had raised $150 million from International Finance Corporation (IFC), Washington, a member of the World Bank group, for up to seven years. The private lender will use this money to scale up its small and medium enterprise (SME) loan portfolio.
"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," Rana Kapoor, managing director and chief executive officer, YES Bank, said.
The financing package to YES Bank includes $45 million provided through IFC's new co-lending programme, in addition to its own account loan of $60 million — both for a period of seven years. Another $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 Serge Devieux, IFC director for South Asia.
Last year, IFC provided a $75 million loan to help YES Bank expand its network to reach underserved people, small businesses, and agricultural borrowers in India.
