Sinlung /
01 February 2013

Yes Bank, IFC to set up PE fund for Northeast India

The fund will invest in small and growth enterprises across sectors such as tourism, infrastructure and healthcare

By Deepti Chaudhary

The corpus of the fund has not been decided yet. Photo: Priyanka Parashar/Mint
The corpus of the fund has not been decided yet. Photo: Priyanka Parashar/Mint

Mumbai, Feb 1 : Yes Bank Ltd and the International Finance Corporation (IFC), a member of the World Bank Group, on Thursday signed a memorandum of understanding to jointly create a private equity (PE) fund that will invest in companies in the northeastern states.
The fund will invest in small and growth enterprises across sectors such as tourism, food and agribusiness, infrastructure, healthcare, education and affordable housing in the largely neglected region.
It will make the investments through equity shares, debentures, convertibles and equity-related instruments.
The corpus of the fund has not been decided yet.
“IFC’s work to increase access to capital for small entrepreneurs in northeast India will help support inclusive growth in a low-income area—one of our top priorities,” said Jin-Yong Cai, IFC’s executive vice-president and chief executive.
Last year, IFC provided a $75 million loan to help Yes Bank expand its network to reach undeserved people, small and medium enterprises, and agricultural borrowers in India.

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