The Overseas Private Investment Corporation (OPIC) announced that USD 5 million in local currency financing has been mobilized to Grameen Impact under an OPIC loan guarantee agreement with India's IndusInd Bank.

The financing was deployed through IndusInd Bank's Impact Investing division, which will support Grameen Impact's lending to local small and medium enterprises.

The OPIC guarantee enabled IndusInd Bank to disburse an equivalent of Rs 335 million loan to Grameen Impact. This is significant as it eliminates foreign exchange rate fluctuation risk from the balance sheet of Grameen Impact, a major challenge faced by borrowers in emerging markets. Grameen Impact is a non-banking financial institution backed by Grameen Capital India, whose shareholders include Acumen and other leading impact investors. Grameen Impact will use the financing to make loans to high impact social enterprises in India in sectors including financial services, affordable healthcare, affordable education, renewable energy and sustainable agriculture.

"Specialized financial institutions like Grameen Impact bring an in-depth understanding of the impact investing ecosystem, and IndusInd Bank provides liquidity support and helps them build scale. Together, partnerships like these create the most meaningful impact on the social enterprise landscape in India," said Roopa Satish, Head Corporate and Investment Banking, IndusInd Bank.

Shares of the bank gained Rs 9.1, or 0.48%, to trade at Rs 1,913.60. The total volume of shares traded was 1,273 at the BSE (9.43 a.m., Tuesday).