IDBI Bank signs USD 340 mn loan pact with Germany's KfW to finance MSME, infra sector
IDBI Bank signs USD 340 mn loan pact with Germany's KfW to finance MSME, infra sectorNew Delhi, Nov 15 (KNN) Public sector lender IDBI has signed a pact with the German Development Bank KfW for a loan facility of USD 340 million to meet the financing needs of MSME sector as well as the infra sector.
According to a media report, the agreement was signed in the national capital and the money will be used for on-lending directly or indirectly through micro-finance institutions and non-banking finance companies.
The loan had a maturity of 10 years and carries a competitive rate of interest, IDBI Bank said in a statement yesterday.
A part of the loan is dedicated for selected infrastructure projects to support municipalities and communities to improve health and living conditions.
The 10-year soft-loan was arranged through IDBI's DIFC Branch in Dubai.
KfW is a German government-owned development bank, based in Frankfurt. It is owned by the Federal Republic of Germany (80 per cent) and the States of Germany (20 per cent). The KfW bank provides assistance to German SMEs including individual entrepreneurs and start-ups. (KNN/SD)