Annapurna Finance Private Limited (AFPL), a leading microfinance and SME finance institution in India, has successfully raised $109.5 million through a multilateral syndicated social loan facility under the External Commercial Borrowing (ECB) framework. This crucial transaction was exclusively arranged by Standard Chartered Bank (SCB), marking a significant milestone for the company.
The loan facility was structured under a social financing framework, reflecting Annapurna’s commitment to financial inclusion. It involved the participation of 10 financial institutions from regions including Southeast Asia, the Middle East, and Africa. The facility was reviewed and validated by S&P Global, ensuring it aligns with global social financing standards. Additionally, a green-shoe option allows for the potential to raise an additional $40 million beyond the original amount.
Annapurna Finance plans to utilize the capital for on-lending to microfinance borrowers, focusing particularly on rural women and underserved populations. The initiative is designed to expand access to financial services, stimulate economic participation, and foster the development of underbanked regions across India. This aligns with Annapurna’s broader mission to drive social impact and create financial empowerment for marginalized communities.
Gobinda Chandra Pattanaik, Managing Director of Annapurna Finance, emphasized the significance of this transaction, stating, “This transaction marks an important milestone for Annapurna Finance. The participation of financial institutions from multiple regions reflects confidence in our financial inclusion efforts. These funds will support our mission to extend credit to rural and underserved communities. For Annapurna, long-term foreign borrowings strengthen the ALM position and bring diversity to our funding sources, ensuring greater sustainability and growth in the future.”
, a leading microfinance and SME finance institution in India, has successfully raised $109.5 mn...){kind=link}