Creditaccess Grameen Secures USD 50 Million Loan from IFC

Mumbai, Feb 3 (PTI) Microlender Creditaccess Grameen on Monday said it willborrow USD 50 million from the International Finance Corporation (IFC) under the external commercial borrowing (ECB) route.

The borrowing will help CAG reach up to 40 lakh additional women borrowers, especially the ones engaged in agriculture and allied activities, according to a statement.

Creditaccess Grameen -- the country's largest Non-Banking Financial Company-Micro Finance Institution (NBFC-MFI) -- said it has secured approval for a USD 50 million commitment from the World Bank Group member institution, it said.

The announcement comes at a time when the going has been difficult for the microfinance sector in the country, which has seen lower collections and a consequent increase in delinquencies.

The CAG statement said the facility will help strengthen its asset liability management position, given flexible repayment structures and maintaining geographical diversification to hedge against market volatility.

The company's Chief Financial Officer Nilesh Dalvi said it is aiming to get 25-30 per cent of funds from foreign sources while maintaining strong control over the average cost of borrowings by FY28.

"IFC's investment will foster greater competitiveness within India's financial sector and we look forward to supporting the company in long-term," IFC country head for India and Maldives, Wendy Werner, said.