YES Bank raises US $200-million loan from ADB for financial inclusion
The money will be used for on-lending in rupee equivalent amounts to finance working capital and investment requirements of the twin target groups, YES Bank said.
PTI Mumbai Last Updated: December 23, 2014 | 17:10 IST
YES Bank, the private sector lender, said on Tuesday it has raised US $200 million in an unsecured loan from Asian Development Bank (ADB) for on-lending to small farm households and rural women's self help groups (SHG).
The money will be used for on-lending in rupee equivalent amounts to finance working capital and investment requirements of the twin target groups, the private sector bank said.
YES Bank's chief executive and managing director Rana Kapoor said the deal should be seen as one that reiterates its focus on responsible banking and furthering the financial inclusion agenda.
"ADB's capital investment and technical assistance will provide sustainable finance to low income women and their families. The project targets small farmers to allow them to benefit from agricultural value chains and enhance their productivity through better access to markets and investment finance," Todd Freeland, Director General at ADB Private Sector Operations, said.
Financial details like the landing cost of the money, including interest and hedging cost, of the money were not made available immediately.
Apart from the unsecured loan, YES Bank said ADB will also provide a Capacity Development Technical Assistance grant of up to US $1 million, which will be used for capacity building and improving the financial literacy of women borrowers.