IFC makes $126m equity investment in Indian private sector lender Federal Bank

Photo: Pixabay

The International Finance Corporation (IFC) and two investment funds managed by IFC Asset Management Company — IFC Financial Institutions Growth Fund, LP and IFC Emerging Asia Fund, LP — have made an equity investment of $126 million (Rs 916 crore) for a 4.99% stake in India’s Federal Bank Limited (FBL).

The investment will help the private sector lender grow and strengthen its environmental, social, and governance (ESG) portfolio, with increased green portfolio financing for projects including energy efficiency, renewable energy, climate-smart agriculture, green buildings, and waste management, per a press statement.

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