Yes Bank bags $ 150 mn funding from OPIC to fund SME lending

New Delhi, July 14 (KNN) Private sector lender Yes Bank has got USD 150 million funding from US government and Wells Fargo to fund SME lending. Out of this USD 50 million of the financing would be used to expand support to women-owned businesses, while another USD 50 million will be used for financing SMEs in low income state.

This is the third round of funding as part of arrangement between the Overseas Private Investment Corporation (OPIC) -- US government development finance institution -- and Wells Fargo.

OPIC will provide USD 75 million in financing to Yes Bank and up to USD 75 million as a syndicated financing from Wells Fargo Bank, a part of financial services provider Wells Fargo & Company.

The bank said this is the third transaction between OPIC and Yes Bank and comes close on the heels of last year's USD 265 million OPIC facility, which the bank will use to extend SME financing in India.

"Specifically, USD 50 million of the financing would be used to expand support to women-owned businesses, while another USD 50 million will be used for financing small and medium enterprises (SME) in low income states," it said.

The bank said that only about a quarter of SMEs able to get the finance they need to grow and create jobs.