Asirvad Microfinance funding
Asirvad Microfinance, a subsidiary of Manappuram Finance has raised $15 million in a seven-year external commercial borrowing loan from the US-based WorldBusiness Capital Inc (WBC).
The loan is backed by the US International Development Finance Corporation, Asirvad Microfinance said in a statement.
Proceeds from the loan, availed under the external commercial borrowing (ECB) norms, will help Asirvad to grow its business of granting small loans to low-income women business owners in rural areas.
This loan is Asirvad’s third long-term facility denominated in foreign currency from an international financial institution, the company added.
Raja Vaidyanathan, Managing Director of Asirvad said that this deal is a big lift to the microfinance sector and reemphasizes the resilience Asirvad has always displayed, and the speed at which it bounces back.
Rob Monyak, Executive Vice-President and Chief Lending Officer for Eurasia/Africa at WBC, said Asirvad plays an important role in fulfilling the needs of women-owned enterprises operating in rural areas.
Asirvad was established in 2007 by Vaidyanathan and was later sold to Manappuram Finance in 2015. It has a customer base of about 260 lakh women, assisted by its 7,000 employees across 1,000 branches over 23 states.
Commenting on the development Raja Vaidyanathan, MD of Asirvad Microfinance, said, “This transaction with an international institution coming at this challenging juncture certainly gives a boost to the microfinance sector and reiterates the resilience Asirvad has always shown, and the speed at which it bounces back.”
Manappuram Finance took over the Chennai-based company in February 2015 and currently holds a 94.78 percent stake.
Established in 2003, WBC is headquartered in Hartford, the capital city of Connecticut, US. It is a regulated commercial finance firm that provides flexible term loans to help small and medium-sized businesses in manufacturing, distribution, logistics, transportation, food processing, packaging, renewables, financial services, and other sectors.
WBC focuses on Latin America and the Caribbean, Central and Eastern Europe, Asia, Africa, and the Middle East.
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