Helping hand. US Development Finance Corp to support financial inclusion, clean energy projects

BL Mumbai Bureau Updated - October 19, 2022 at 09:36 AM.

Announces seven-year, $35-million loan for Creditaccess Grameen

The US government agency has also signed an agreement for a $10-million loan guarantee for Punjab Renewable Energy Systems | Photo Credit: pcess609

The US Government’s Development Finance Corporation (DFC) is looking to focus on investments pertaining to financial inclusion and clean energy in India, according to CEO Scott Nathan, who is on a three-day visit to India.

The US DFC, on Tuesday, announced a seven-year, $35-million loan to Creditaccess Grameen -- the country’s largest NBFC-MFI, to help grow its reach to marginalised women and encourage more women into employment and leadership in microfinance.

The government agency has signed an agreement for a $10-million loan guarantee for Punjab Renewable Energy Systems, which will help fund the construction of seven biomass plants. It has also committed $30-million for an agritech fund and $10-million to a milk company, Nathan said.

The DFC has so far committed $3-billion to private Indian enterprises since formation in 2019. The agency will also announce investments in the healthcare segment during the New Delhi-leg of Nathan’s visit, in addition to other focus areas such as digital and physical infrastructure.

Without specifying DFC’s overall commitment to India, Nathan said the agency’s investments will continue to grow as it expands into more areas of sustainable growth.

He added that he met private equity fund managers and officials of EXIM Bank, hinting that the US FDC and EXIM Bank may work on some transactions going ahead.

Published on October 19, 2022 03:32

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