Ifc makes debt investment in microfinance lender Creditaccess Grameen

NEW DELHI: International Finance Corp. (IFC), the private investment arm of the World Bank, has offered to invest up to $50 million (about 423 crore) in listed microfinance company CreditAccess Grameen Ltd.

“The IFC’s proposed investment includes an investment of up to $50 million senior debt in CreditAccess Grameen Limited (CAGL) for a term of 3 years. The proceeds will be used to expand the company’s portfolio to female borrowers for of income generation, especially in the low-income or rural areas of India,” mentioned an IFC disclosure.

Targeted for on-lending to senior loans and syndications, IFC’s investment in CreditAccess will support the resilience of microfinance institutions in the marketplace by comforting other local and international investors, according to the former’s disclosure.

In July last year, Bengaluru-based CreditAccess Grameen raised $25 million, or around 187 crore, in external commercial borrowings (ECB) from Swedish development finance institution Swedfund International AB, VCCircle reported.

Earlier this month, the company announced a tripling of its Q4FY22 consolidated net profit to 160 crores of 56.3 crores a year ago. Net interest income and operating income before provisioning increased 12.1% year-on-year to reach 520 crores and 369 crores, respectively. The microfinance lender’s gross loan portfolio and disbursements for the last quarter of FY22 also increased by more than 22% year over year.

CreditAccess operates in 14 Indian states and one union territory through 1,635 branches and has a borrower base of 3.8 million women. The microlender had a gross loan portfolio of $2.2 billion and a net worth of $543 million as of March 31.

Last month, VCCircle reported that IFC had committed at least $35 million to Motilal Oswal Private Equity’s (MOPE) fourth local fund, which is valued at more than $588 million ( 4,500 crore).

In August last year, Kandla International Container Terminal Private Limited (KICT), part of JM Baxi Group and 100% owned by International Cargo Terminals & Infrastructure, received a senior loan of up to 30 million dollars from IFC.

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