IndusInd Bank has said that the Overseas Private Investment Corporation (OPIC) has announced that USD 5 million in local currency financing has been mobilized to Grameen Impact under an OPIC loan guarantee agreement with the Bank.
The financing was deployed through IndusInd Bank’s Impact Investing division, which will support Grameen Impact’s lending to local small and medium enterprises. The OPIC guarantee enabled IndusInd Bank to disburse an equivalent of 335 million Rupees loan to Grameen Impact. 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.
Grameen Impact is a non-banking financial institution backed by Grameen Capital India, whose shareholders include Acumen and other leading impact investors. Grameen Impact will use the financing to make loans to high impact social enterprises in India in sectors including financial services, affordable healthcare, affordable education, renewable energy and sustainable agriculture.
Meanwhile, shares of the bank were trading at Rs 1919.40 apiece, up 0.78 per cent from the previous close at 10:01 hours on BSE.