New Delhi, India, January 31, 2013—IFC,
a member of the World Bank Group, and Yes Bank plan to establish a fund
to support small and growing businesses in northeast India, an initiative
that will promote inclusive and sustainable development in priority sectors.
The partnership will explore new ways
to provide loans to enterprises in the remote region, including the creation
of a specialized fund to facilitate small investments. Fund size and other
details of the partnership are being worked out at this stage. Priority
sectors identified for investments include food and agribusiness, infrastructure,
healthcare, education, and affordable housing.
“There are substantial untapped opportunities
in the northeastern states of India. Collaborating with IFC will help us
leverage our respective capabilities in expanding financial services to
the region,” said Rana Kapoor, Managing Director and CEO of Yes Bank.
Yes Bank plans a strong presence in
northeast India, promoting job creation and inclusion. IFC will support
and complement these efforts through a combination of its investment and
“IFC's work to increase access to capital
for small entrepreneurs in northeast India will help support inclusive
growth in a low-income area—one of our top priorities,” said Jin-Yong
Cai, IFC Executive Vice President and CEO. “This initiative will leverage
the expertise and resources of IFC and Yes Bank to develop long-term solutions
that can be replicated in other low-income and fragile regions.”
Last year, IFC provided a $75 million
loan to help Yes Bank expand its network to reach underserved people, small
and medium enterprises, and agricultural borrowers in India. Given the
high growth potential of northeast India and opportunities for greater
inclusion, IFC has been collaborating with institutions across sectors
to foster economic and social development in the region.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.