CreditAccess Grameen advanced 2.07% after signing a loan agreement with U.S. International Development Finance Corporation (DFC), the U.S. Government's development finance institution to borrow a $35 million ESG-linked loan.
Under the agreement, CA Grameen will borrow a $35 million ESG-linked loan for up to seven years through the external commercial borrowing (ECB) route.The transaction recorded the second ESG-linked loan for CA Grameen as it continued to witness rising interest from global financial institutions focused on funding ESG-compliant businesses and believers of the microfinance growth story, said the company.
Udaya Kumar Hebbar, MD & CEO at CreditAccess Grameen said, We are humbled to have the support of such a pedigreed lender who has reposed faith in us and shares a common development agenda of empowering women from the bottom of the pyramid. The Indian microfinance industry, being the global leader has all the building blocks required to grow sustainably and is well placed on the ESG front. The long-term foreign borrowings strengthen our liability strategy by diversifying our geographical risk as well as achieving a stronger asset-liability position to delivering sustainable growth over the longer term.
CreditAccess Grameen (CAGL) is a microfinance institution focused on providing micro-loans to women customers predominantly in rural areas across India.
The microfinance lender's consolidated net profit surged to Rs 139.56 crore in Q1 FY23 as against Rs 20.29 crore recorded in Q1 FY22. Total income jumped 23.2% to Rs 760.52 crore in Q1 FY23 from Rs 617.37 crore reported in the corresponding quarter previous year.
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