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YES BANK, OPIC and Wells Fargo tie-up to support women entrepreneurs, SMEs

ANI  |  New Delhi [India] 

India's largest Private Sector (PSB) on Friday announced its tie-up with Overseas Private Investment Corporation (OPIC), the U.S. Government's Development Institution, and Wells Fargo on an agreement to increase lending to small and medium enterprises (SMEs) in

Under the agreement, OPIC will provide USD 75 million in financing and up to USD 75 million in syndicated financing jointly arranged by Wells Fargo and OPIC to

Specifically, USD 50 million of the financing will be used to expand support to women-owned businesses, while another USD 50 million will be used for financing SME businesses in low-states.

Dev Jagadesan, OPIC's Acting President and Chief Executive Officer (CEO), signed the financing agreement alongside Arun Agrawal, Group President - International Banking, YES BANK, showcasing both the organizations' dedication towards ensuring access to funding for women-owned businesses and SMEs in

This is the third between OPIC and and comes close on the heels of last year's USD 265 million OPIC facility, which will use to extend SME financing in

has also partnered with International Corporation and Women Entrepreneurs Opportunity Facility by drawing a USD 50 million loan in March 2016 for mobilizing capital for women entrepreneurs.

"This agreement with OPIC further strengthens YES BANK's ability to fund and support the unique needs of SMEs and the entrepreneurial ecosystem; thereby boosting the developmental agenda in low-states of It underscores the potential of YES BANK's and financial model. This facility will support financing to women entrepreneurs in for driving future economic growth and job creation," said MD and CEO YES BANK, Rana Kapoor.

"OPIC, YES BANK, and Wells Fargo have a strong history of partnering to support lending to small businesses and I look forward to continuing this partnership to foster economic growth in by alleviating the financial challenges SMEs commonly face," said OPIC's Acting President and CEO, Dev Jagadesan.

SMEs contribute about 45 percent of industrial output and employ 42 million people in An estimated three million women-owned businesses in employ over eight million people. However, only about a quarter of them are able to get the they need to grow and create jobs.

However, the World estimates that viable and addressable demand for SME lending in debt surpasses supply by USD 48 billion, a shortfall that holds back the transformative effect a thriving entrepreneur class can have on a developing economy.

This gap is particularly pronounced in India's low states and women-owned businesses, where approximately two-thirds of the SME debt gap resides.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, July 14 2017. 16:42 IST