By Accommodation Times News Services
International Finance Corporation (IFC), the World Bank’s private-sector lending arm, will invest up to Rs 135 crore in microlender Grameen Koota Financial Services Pvt Ltd via debt. The bank is raising funds to provide more loan borrowers who are in need of loans.
IFC said, the investment will help Grameen Koota to diversify its sources of funding and provide microfinance to more borrowers who have little or no access to formal sources of financing, IFC said in a disclosure. The investment will be made through non-convertible debentures, it said.
Grameen Koota has been in micro-credit operations since 1999 and is the sixth-largest microfinance institutions in terms of gross loans in India as of December 2015, IFC said.
The Bangalore-based company operates in five states– Karnataka, Maharashtra, Tamil Nadu, Madhya Pradesh and Chhattisgarh–across 71 districts through 298 branches and has around 1.2 million woman borrowers.
Grameen Koota is majority owned by Credit Access Asia NV (81.2%), a company incorporated in the Netherlands with interests across several Asian microfinance institutions including Equitas Holdings Ltd in India. Creation Investments Social Funds II, Grameen’s promoters and employees own the remaining stake in the lender.