Pune-based micro finance institution Suryoday Microfinance may get $11 million funding from the International Finance Corporation (IFC) in order to expand its operations.
The private sector investment arm of the World Bank considers to infuse the capital in the microfinance firm through external commercial borrowing (ECB) route in the form of quasi-equity and senior debt.
The MFI, which operates as a non banking finance company, would be able to meet its regulatory capital adequacy requirements for the next 2-3 years through the capital infusion.
The firm operates across five states and has a borrower base of approximately 145,000 and a gross loan portfolio in excess of Rs 120 crore.
If the capital infusion is made, it would be the third equity investment for the MFI in the last six months. In January, 2013, the MFI had raised Rs 20 crore ($3.7 million) from its existing investors Aavishkaar Goodwell and Lok Capital.
The funding was to strengthen its presence in Maharashtra, Tamil Nadu, Gujarat and Orissa and also to expand into neighbouring states. (SEE: Pune MFI Suryoday raises $3.7M from Aavishkaar Goodwell, Lok Capital).
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