JOIN USYES Bank has teamed up with the Overseas Private Investment Corporation (OPIC), the US Government’s Development Finance Institution, and Wells Fargo on an agreement to increase lending to small and medium enterprises (SMEs) in India.
Under the agreement, OPIC will provide $75 million in financing and up to $75 million in syndicated financing jointly arranged by Wells Fargo Bank and OPIC to YES Bank.
Specifically, $50 million of the financing will be used to expand support to women-owned businesses, while another $50 million will be used for financing SME businesses in low-income states, YES Bank said.
This is the third transaction between OPIC and YES Bank and comes close on the heels of last year’s $265 million OPIC facility, which YES Bank will use to extend SME financing in India. YES Bank has also partnered with International Finance Corporation and Women Entrepreneurs Opportunity Facility by drawing a $50 million loan in March 2016 for mobilising capital for women entrepreneurs.
“This significant co-financing agreement comes on the back of successful execution of two similar facilities by YES Bank over the past two years. This agreement with OPIC further strengthens YES Bank’s ability to fund and support the unique needs of SMEs and the entrepreneurial ecosystem; thereby boosting the developmental agenda in low-income states of India.
“The agreement underscores the potential of YES Bank’s business and financial model. This facility will support financing to women entrepreneurs in India for driving future economic growth and job creation,” YES Bank MD and CEO Rana Kapoor said.
“OPIC’s facility will help YES Bank expand its SME lending capacity, specifically enabling them to reach both women and entrepreneurs in low-income states who have much to contribute to India’s economic activity,” OPIC acting president and CEO Dev Jagadesan said.