HSBC is the sole arranger for the social loan facility, the company said.
With this, the lender has secured over $300 million in commitments from global banks, development financial institutions and impact investors this fiscal, reinforcing investors’ confidence in the microfinance sector, which is on a revival mode from prolonged asset quality stress.
CreditAccess has met over 15% of its borrowing requirements this fiscal through foreign sources, as it looked to diversify the resource base. The proceeds from the facility will be deployed to support eligible social projects,
“The foreign currency borrowings with a tenure of three to five years, significantly enhance our asset liability management profile and liquidity position,” CreditAccess’s chief financial officer Nilesh Dalvi said. This also helped reduce the cost of funds, he said.
Its assets under management grew 7% year-on-year to Rs 26,566 crore at the end of December.