OPIC to invest $195m in India, Indonesia
The Overseas Private Investment Corporation (OPIC), a development finance institution (DFI) backed by the US government, has approved $195 million for investments in India and Indonesia.
This includes up to $75 million in financing for India’s Yes Bank to support growth of its lending programs for small and medium-sized enterprises (SMEs), according to a release. OPIC will also join Wells Fargo to arrange another $75 million in syndicated financing for the bank. As part of its programs, Yes will reserve $50 million for loans to SMEs owned by women and another $50 million for loans to SMEs based in India’s low-income states.
OPIC’s investment in Yes is expected to complete a 2015 commitment to mobilize $1 billion in loans for Indian SMEs, which often face difficulty borrowing money from banks. Previous deals in this area include participation in a INR1.34 billion ($20 million) round last year for non-banking financial company and venture debt lender Intellegrow Finance.
In Indonesia, OPIC has committed up to $120 million in financing for Energi Bayu Jeneponto to support the construction of a 72-megawatt wind farm in Indonesia. The facility is expected to help the country resolve its energy production shortfall and contribute to the government’s goal of increasing renewable energy to 23% of total power output by 2025.
In a similar deal last year, OPIC agreed to provide up to $250 million in debt funding to Indian renewable energy producer ReNew Power Ventures to support the construction and operation of several solar power projects. ReNew’s backers include the Asian Development Bank, along with the Abu Dhabi Investment Authority, Goldman Sachs and the Global Environment Fund (GEF), which committed $265 million last year.
OPIC seeks to help solve development challenges in emerging markets, thereby advancing US foreign policy and national security objectives. It is active in Asia as both a direct investor and as an LP, having committed $1 billion to Indian GP LeapFrog Investments and eight other firms in 2015. The DFI also supports US companies seeking to enter emerging markets.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.