CreditAccess Grameen secures €25M from DEG and Rs 170 Cr from Citi via co-financing
CreditAccess Grameen provides loans designed to help borrowers start or expand income-generating activities, typically aimed at women entrepreneurs in rural areas.
CreditAccess Grameen, a microfinance-focused NBFC, on Friday said it secured 25 million euros from the German Investment Corporation (DEG) and Rs 170 crore through a co-financing arrangement with Citi.
This financing structure combines development finance and private-sector funding and aims to address the financing needs of underserved communities. Citi also acted as the lead arranger and coordinator for the transaction.
"This strategic move positions us well to navigate macroeconomic cycles, ensuring a strong foundation for sustainable growth in the coming years,” Nilesh Dalvi, Chief Financial Officer of CreditAccess Grameen, said in a statement.
He added, "The growing share of foreign borrowings plays a key role in bolstering our liquidity and Asset-Liability Management (ALM) position, diversifying geographical risk, and strengthening our financial resilience."
Neeraj Kumar, Managing Director and Head of Corporate Bank, India Sub-Continent of Citi, said the co-financing arrangement will support women micro-entrepreneurs and is core to Citi’s financial inclusion agenda in India.
He added that Citi has set a social finance goal to enable access to basic services and economic opportunities for 15 million low-income households, including 10 million women, in emerging markets.
Founded in May 1999 by Vinatha Reddy and co-founded by Suresh Krishna, CreditAccess Grameen started as a project under the NGO T. Muniswamappa Trust in Avalahalli in South Bengaluru. In 2007-08, it transitioned into a NBFC to offer loans designed to help women borrowers start or expand income-generating activities in rural areas.
It also provides financing for upgrading or improving living conditions, such as home repairs or renovations, loans for purchasing two-wheelers, and gold-backed loans.
At present, the NBFC operates across 398 districts in 16 Indian states through 2,031 branches.
“We would like to express our gratitude towards the CA Grameen team for their great cooperation in bringing the deal to the finish line. We are proud to be part of the high impact generated by CA Grameen’s financing of women borrowers in rural India," Karin Homermann, Vice-President of DEG, said.
Edited by Suman Singh
