SUMMARY
- CreditAccess Grameen has secured 25 million euros from DEG and Rs 170 crore through a co-financing deal with Citi.
- This financial arrangement combines development finance with private-sector investment.
- It aims to meet the funding needs of underprivileged communities.
Microfinance-focused NBFC CreditAccess Grameen announced on Friday that it has secured 25 million euros from the German Investment Corporation (DEG) and Rs 170 crore through a co-financing deal with Citi.
This financial arrangement combines development finance with private-sector investment, aiming to meet the funding needs of underprivileged communities. Citi also took the role of lead arranger and coordinator for this transaction.
“This strategic move positions us well to navigate macroeconomic cycles, ensuring a strong foundation for sustainable growth in the coming years,” said Nilesh Dalvi, Chief Financial Officer of CreditAccess Grameen.
“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,” he added.
Neeraj Kumar, Managing Director and Head of Corporate Banking for Citi in the India Sub-Continent shared that this co-financing agreement will aid women micro-entrepreneurs and is central to Citi’s mission of financial inclusion in India.
He noted that Citi has set a social finance objective to facilitate access to essential services and economic opportunities for 15 million low-income households, including 10 million women, in emerging markets.
Established in May 1999 by Vinatha Reddy and co-founded by Suresh Krishna, CreditAccess Grameen originated as a project under the NGO T. Muniswamappa Trust in Avalahalli, South Bengaluru. In 2007-08, it evolved into an NBFC to provide loans aimed at assisting women borrowers in starting or expanding income-generating ventures in rural regions.
It also offers financing for enhancing living standards, such as home repairs or renovations, loans for purchasing two-wheelers, and gold-backed loans. Currently, the NBFC operates in 398 districts across 16 Indian states through 2,031 branches.
Karin Homermann, Vice-President of DEG, said, “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.”
