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OPIC gives $5 mn loan to Grameen Impact via IndusInd Bank

Press Trust of India  |  New Delhi 

The arm (OPIC) has given USD 5 million loan to to support domestic small and medium enterprises.

The financing to Grameen Impact, a company, comes through IndusInd in the form of a loan guarantee agreement.

The loan is to be deployed through the bank's division, which will support Grameen Impact's lending to local small and medium enterprises.

The guarantee enabled the to disburse an equivalent of Rs 33.5 crore (USD 5 million) loan to Grameen Impact, IndusInd said in a statement.

"This is significant as it eliminates foreign exchange rate fluctuation risk from the balance sheet of Grameen Impact, a major challenge faced by borrowers in emerging markets," it added.

Grameen Impact will use the financing to give loans to high impact social enterprises in in sectors including financial services, affordable healthcare, affordable education, and sustainable agriculture.

"By supporting lending to high-impact businesses in local currency, this project will help businesses in overcome one of the main challenges to obtaining financing," said Ray W Washburne, President and

Grameen Impact is backed by India, whose shareholders include and other leading impact investors.

"has rapidly become a global leader in impact investing, with over USD 5 billion of investments in this space.

"However, the bulk of this is equity; even today social enterprises struggle to raise debt financing, which is critical for scale... is furthering our commitment to build a 'capital-with-a-conscience' ecosystem," said Royston Braganza, of

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

First Published: Tue, June 12 2018. 16:05 IST