IFC (International Finance Corporation), a member of the World Bank Group, will provide up to $20 million to RGVN (North East) Microfinance Ltd in the form of a senior debt investment, according to an IFC disclosure.
Guwahati-headquartered RGVN is an RBI-registered NBFC which facilitates loans to health, education and livelihood sectors in the North Eastern region.
The company has Rs 6.1 billion ($89 million) assets under management across six North-Eastern states including Sikkim, Meghalaya, Tripura, Nagaland, Assam and northern part of West Bengal, and operates through 133 branches.
IFC’s investment will help the NBFC to expand its presence and loan offerings in India’s north-eastern states catering to the unbanked sections of the population.
Rashtriya Gramin Vikas Nidhi (RGVN) is one of the 10 applicants that received Small Finance Bank license from Reserve Bank of India in mid-September 2015.
Currently Dia Vikas Capital, the Indian arm of an Australian impact investing firm, holds the largest stake in the company with 19.36 per cent followed by Norwegian microfinance fund NMI with 15.59 per cent and Oiko Credit, a Dutch investment firm with 12.89 per cent stake.
RGVN had recently raised fresh capital from new investors like SIDBI Trustee Company Ltd (14.40 per cent), RNT Associates Pvt Ltd (10.2 per cent), Ratan Tata’s investment and Pi Ventures LLC (7.20 per cent), SIDBI (8.4%), NEDFi (5.04%) and ESOP Trust (1.68%).
IFC, which has been actively investing in Indian companies, has also invested in other MFIs like Grameen Koota Financial Services Pvt Ltd, Equitas, Satin Creditcare Network and Swadhaar FinServe besides sector-focused fund managers like Aavishkaar and Lok Capital.
Most recently, IFC committed $3 million investment to pi Ventures, an early-stage venture capital firm, which recently marked first close of its maiden fund. Prior to that, it proposed an investment of up to $25 million in global private equity manager Carlyle Group LP’s fifth Asia growth fund.
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