The loan to India’s fourth largest private sector lender is part of the $1bn OPIC help for India, which was announced by US President Barack Obama at the India-US Business Summit. The loan has to be repaid in 12 years, reports Press Trust of India (PTI).
In a statement, Yes Bank said: "Specifically, USD 100 million of the financing would be used to support either micro-SMEs or SMEs in underserved rural and urban markets. The agreement underscores OPIC’s commitment to growing the small and medium business sector in India."
The SMEs’ contribution to the Asian country’s GDP is 35%.
During the signing of MoU, Yes bank MD and CEO Rana Kapoor was quoted as saying by PTI: "It is a very meaningful agreement.
"This deal will also allow us to go into the underserved areas and to go into urban areas. This will be a very important part of our deliverables."
Wells Fargo Bank is serving as a sponsor and co-lender to the project.
The MoU was signed by Overseas Private Investment Corporation (OPIC) president and CEO Elizabeth Littlefield and Yes Bank MD and CEO.
