Private sector lender Yes Bank has garnered $150 million in funding from the United States Government in tandem with Wells Fargo. These funds will be deployed for scaling up lending that supports women entrepreneurs along with increasing lending for medium and small sized Indian enterprises. This is the third funding round for the bank as part of its arrangement with OPIC (Overseas Private Investment Corporation) which is a development finance institution of the United States Government and Wells Fargo.
As part of this agreement, $75 million in financing will be provided by OPIC and up to $75 million will be arranged jointly arranged in syndicated financing by Wells Fargo Bank for Yes Bank as per the official statement. $50 million of these funds will be used for increasing overall support for businesses that are run by women. An equal amount will also be used for offering funding to SME businesses in traditionally low-income states as per the authorities involved in the deal.
An MoU has already been signed by the Acting President & Chief Executive Officer (CEO), Dev Jagadesan and the Group President, International Banking, Yes Bank, Arun Agrawal. According to the CEO & Managing Director at Yes Bank, Rana Kapoor, this facility will be of great help for women entrepreneurs in terms of availing of vital funding and also for spurring future job creation and economic development in India.
This is the third transaction between Yes Bank and OPIC and comes after the $265 million facility from OPIC last year which Yes Bank will be using for providing SME financing in India as per the regulatory filing from the bank. SMEs contribute approximately 45% of overall industrial output and also employ around 42 million people in India. Approximately 3 million businesses owned by women in the country also employ more than 8 million people as per reports. However, just a quarter of these businesses are able to get access to desired funding for future job creation and growth.