Yes Bank and International Finance Corporation (IFC) on Thursday signed a memorandum of understanding (MoU) to create a private equity (PE) fund that will make investments across sectors in north-eastern states according to a statement released by the ban
Yes Bank and International Finance Corporation (IFC) on Thursday signed a memorandum of understanding (MoU) to create a private equity (PE) fund that will make investments across sectors in north-eastern states according to a statement released by the bank.
The PE fund will focus on small and growth enterprises (SGE) in the region. The MoU was signed by Jin-Yong Cai, EVP & CEO, IFC, and Rana Kapoor, MD & CEO, YES Bank. The size of the fund is not disclosed yet.
“We believe that there are substantial untapped opportunities existing in the north-eastern states of India that need to be honed by the private sector in order to create local livelihood opportunities resulting in greater financial inclusion in the region,” said Rana Kapoor, MD and CEO, Yes Bank.
The fund corpus will focus on investments spread mainly across sectors of tourism and hospitality, food and agribusiness, infrastructure, healthcare, education, livelihood creation and affordable housing.
“IFC’s work to increase access to capital for small entrepreneurs in north-east India will help support inclusive growth in a low—income area one of our top priorities,” said Jin-Yong, EVP and CEO, IFC.
This would be the first of its kind region—focused private equity fund directing PE into low income states to meet the deficit in access to financing for enterprises in the region.
Last year, IFC had provided a $75 million loan to help Yes Bank expand its network to reach underserved people, small and medium enterprises and agricultural borrowers in the country.
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.