Overseas Private Investment corporation (OPIC) has announced that $5 million in local currency financing has been mobilized to Grameen Impact under an OPIC loan guarantee agreement with India's IndusInd Bank. The financing was deployed through 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 Rs 33.50 crore 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.
IndusInd Bank, which commenced operations in 1994, caters to the needs of both consumer and corporate customers. As on June 30, 2017, IndusInd Bank has 1210 branches, and 2090 ATMs spread across 687 geographical locations of the country.
