New Delhi, India, January 31, 2013
—IFC, a member of the World Bank Group, and Yes Bank plan to establish a fund to support small and growing businesses in northeast India, an initiative that will promote inclusive and sustainable development in priority sectors.
The partnership will explore new ways to provide loans to enterprises in the remote region, including the creation of a specialized fund to facilitate small investments. Fund size and other details of the partnership are being worked out at this stage. Priority sectors identified for investments include food and agribusiness, infrastructure, healthcare, education, and affordable housing.
“There are substantial untapped opportunities in the northeastern states of India. Collaborating with IFC will help us leverage our respective capabilities in expanding financial services to the region,” said Rana Kapoor, Managing Director and CEO of Yes Bank.
Yes Bank plans a strong presence in northeast India, promoting job creation and inclusion. IFC will support and complement these efforts through a combination of its investment and advisory services.
“IFC's work to increase access to capital for small entrepreneurs in northeast India will help support inclusive growth in a low-income area—one of our top priorities,” said Jin-Yong Cai, IFC Executive Vice President and CEO. “This initiative will leverage the expertise and resources of IFC and Yes Bank to develop long-term solutions that can be replicated in other low-income and fragile regions.”
Last year, IFC provided a $75 million loan to help Yes Bank expand its network to reach underserved people, small and medium enterprises, and agricultural borrowers in India. Given the high growth potential of northeast India and opportunities for greater inclusion, IFC has been collaborating with institutions across sectors to foster economic and social development in the region.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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