Yes Bank Signs MoU Worth $220 Million With The US Govt’s OPIC

Mumbai-headquartered private sector lender Yes Bank has struck a deal with the Overseas Private Investment Corporation (OPIC), an arm of the US government's development finance institution, for a loan of $220 million (about Rs 1,350 crore). This loan is part of the $1-billion OPIC assistance, which was announced by President Barack Obama during the India-US Business Summit. The loan is for a period of 12 years.

"Specifically, $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" Yes Bank said in a statement.

The contribution of Micro, Small and Medium Enterprises (MSME) sector is about 40% to India’s exports and about 35% to the GDP.

"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," said Rana Kapoor, managing director and chief executive officer (CEO) of Yes Bank.

The MoU was signed by OPIC president and CEO Elizabeth Littlefield and Yes Bank’s Kapoor.

"We are excited to announce our partnership with Yes Bank in anticipation of the economic growth it will spur," said Littlefield.