CreditAccess Grameen Limited Signs Historic Syndicated Social Loan Facility of Up to $200 Million
June 27, 2023 at 05:43 am
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CreditAccess Grameen Limited has signed a historic syndicated social loan facility of up to USD 200 million, qualifying as ECB under the automatic route of the RBI. The Company has received USD 160 million in commitments to date, along with a green-shoe option to raise an additional USD 40 million, exercisable over 120 days from the date of signing of the facility agreement. The Company has currently drawn USD 100 million, and the remaining commitments
shall be drawn over the coming months. This marks the first social ECB loan in the Indian microfinance industry and the fourth from India. The social loan shall abide by CA Grameen's Social Loan Framework which aligns with the Social Loan Principles 2023, stipulating the use of proceeds, social development goals and governance, according to the Loan Market Association. Sustainalytics has provided a second-party opinion on CA Grameen's Social Loan Framework, considering it credible and impactful.
CreditAccess Grameen Limited is an India-based microfinance company focused on providing micro-loans to women customers predominantly in rural areas. The Company operates in approximately 353 districts in 14 states and one union territory in India through 1,826 branches. The Company operates in a single business segment that is lending to members. Its microfinance group lending products include income generation loan, home improvement loan, family welfare loan and emergency loan. The Company's microfinance individual lending product is Unnati loan. Its retail finance products include grameen vikas loan, grameen two-wheeler loan, gruha vikas loan and grameen swarna loan. The Company's distributor products include grameen suraksha, life insurance and national pension scheme (NPS) - Swavalamban. It has tied up with various insurance service providers, including HDFC Life and Kotak Life to provide insurance coverage to customers and spouse/co-borrowers (applicable for retail finance).