Press Releases
print

IFC’s $150 Million Financing to India’s YES Bank to Boost Lending to Women Entrepreneurs


In New Delhi:
Minakshi Seth

Phone: +91 11 4111 1000

E-mail:
MSeth@ifc.org

In Washington, D.C.:
Alexandra Klöpfer
Phone: +1 202 473-4645
E-mail:
Aklopfer@ifc.org  


New Delhi, India, December 23, 2013—IFC, a member of the World Bank Group, is providing a $150 million financing package to YES Bank to expand access to finance for women-owned small businesses and create jobs in India. In South Asia, this is IFC’s first credit line with a gender component that will help YES Bank increase its lending to small businesses in India's low income states, including in the north-east region.

The financing package includes a loan from IFC's own account of $60 million, a $45 million syndicated loan from Doha Bank, Intesa Sanpaolo, Bank Muscat, and AKA Frankfurt, and an additional $45 million through the IFC Managed Co-Lending Portfolio Program, a new syndications platform that offers institutional investors the ability to passively participate in IFC’s future senior loan portfolio. Globally, this is the first IFC transaction to receive funding through this program.


"IFC’s funding will add much-needed resources to YES Bank’s lending program for micro, small, and medium enterprises, helping scale up our loan portfolio for this segment,” said Rana Kapoor, Managing Director and CEO, YES Bank. “The investment demonstrates YES Bank’s ability to raise long tenor funds from global banks and institutions that have partnered IFC under this loan facility.”


YES Bank will work with IFC to expand its direct farmer lending and developing a credit scorecard for its small business clients. According to an IFC study, Micro, Small, and Medium Enterprise Finance in India: A Research Study on Needs, Gaps and Way Forward, financial institutions meet only one-fourth of the demand from small enterprises in India. With an estimated 30 million micro, small, and medium enterprises across industries, and employing 69 million people, small businesses are an important segment of the Indian economy.

“Increasing financial access to micro, small, and medium enterprises directly supports job creation, a top priority for IFC in India,” said Serge Devieux, IFC Director for South Asia. “The investment shows our commitment to support underserved and un-banked women business owners who generate significant social and economic benefits.”

Last year, IFC provided a $75 million loan to help YES Bank expand its network to reach underserved people, small businesses, and agricultural borrowers in India.

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org

Stay Connected

www.ifc.org/southasia
www.facebook.com/IFCsouthasia
www.twitter.com/IFC_SouthAsia
www.facebook.com/IFCwbg
www.twitter.com/IFC_org
www.youtube.com/IFCvideocasts
www.ifc.org/SocialMediaIndex