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

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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.

It will also support FBL in strengthening its tier 1 capital adequacy ratio (CAR) and expanding its micro, small, and medium-sized enterprises (MSME) and climate finance portfolios.

“This move is in line with IFC’s strategy to support green growth by spurring investments to build better and greener, seizing the opportunities to help India meet its climate goals and build a greener, resilient future,” said Roshika Singh, Acting Country Manager for IFC in India.

“The investment is also expected to create tens of thousands of jobs, with micro, small and medium-sized enterprises gaining access to much-needed financing, which will also help ensure an inclusive recovery.”

According to the statement, India ranks third globally in terms of greenhouse gas (GHG) emissions, with the country needing substantial investments to meet its goals under the Paris Agreement to reduce GHG emissions by 2030. IFC, a World Bank institution, estimates a total climate-smart investment opportunity of $3 trillion in India till the year 2030.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.