Fusion Micro Finance has entered into a loan agreement with the United States International Development Finance Corporation (DFC) for an overall facility of $25 million, the company said in a release.
The microfinancier has received an initial disbursement of $20 million as external commercial borrowing (ECB), which will be used for the expansion of business operations with the aim of advancing financial inclusion and economic access among rural women entrepreneurs.
“(It is) in sync with our strategy to tap varied sources of funds and diversify our liability mix. This borrowing will help in expanding our business operations and loan growth. It is an eight (8) year loan which will further strengthen our asset-liability mix. We are confident that this landmark transaction will open doors for larger pools of international capital to fund our future growth plans,” said Gaurav Maheshwari, CFO, Fusion Micro Finance Ltd.
The partnership will strengthen Fusion Micro Finance’s financial position and enhance its credibility and reputation within the global development financial landscape, the microfinance lender said adding that it will leverage the loan facility to improve its outreach and impact, and drive positive social change and economic development in underserved communities.